BE18.5 (similar to) Question Help Breen Iron Works signed a lease on January 1 with Chung Bank for an iron-stamping machine. The equipment is not specialized in nature. The lease has a 10-year term with no purchase option or transfer of ownership. Under the terms of the contract, Breen must pay $4,300 on January 1 of each year. Chung Bank's implicit rate is 9%. The iron-stamping machine has an economic life of 20 years and a fair value of $47,000. If Breen borrowed at Chung Bank, the loan would carry an interest rate of 11%. The lessee knows the implicit rate. Is this contract an operating or a finance lease for the lessee? (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an ordinary Annuity table.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) (Click the icon to view the Future Value of an Annuity Due table.) Before completing the requirement, identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is $