Analyzing and Interpreting Footnote on Operating and Capital Leases Assume Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2010, are as follows:

Years (dollars in millions)	Capital Leases	Operating Leases
2011	$ 83	$ 1,449
2012	71	1,226
2013	67	966
2014	63	796
2015	46	477
Thereafter	143	1,947
Total minimum rental commitments	473	$ 6,861
Less interest and executory costs	(122)
Present value of minimum lease payments	351
Less current installments	(46)
Long-term obligation at December 31, 2010	$ 305

(a) Confirm that the implicit discount rate for Verizon's capital leases is 8.06%.

N	0	1	2	3	4	5	6	7	8	9
Amount	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer
IRR	Answer %

c) Compute the present value of Verizon's operating leases, assuming an 8.06% discount rate and rounding the remaining lease term to 3 decimal places. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.)

($ millions)	Present Value
Year 1	Answer
Year 2	Answer
Year 3	Answer
Year 4	Answer
Year 5	Answer
After 5	Answer
Total*	Answer

* (Use subsequent rounded answers for calculation.)