Assume Melissa$$s Magic Markers wishes to lease a piece of equipment for $5$ years. The economic life of the equipment is $6$ years. The borrowing cost is assumed to be $10\%.$

The market value of the equipment is $$750,000$ and the annual lease payment due at the end of each year is $$191,242\mathrm{.}50.$

The present value factor for an annuity for $5$ years at $10\%$ is $3\mathrm{.}791.$ The present value factor for an annuity for $6$ years at $10\%$ is $4\mathrm{.}355.$

What is the initial value of the equipment that Melissa$$s Magic Markers will record on the balance sheet $($as both an asset and liability$)$ at lease inception, rounded to the nearest dollar?

$$0$

$$725,000$

$$750,000$

$$832,861$