Barry Limited and Allen Limited enter into a finance lease agreement with the following terms:

lease term is 4 years

• estimated economic life of the leased asset is 5 years
• 4 annual rental payments of $17 000 each payable in advance
• residual value at the end of the lease term is not guaranteed by the lessee
• interest rate implicit in the lease is 9%.

On inception date, the present value of the lease payments is: