Can someone please explain why the Face Value solution I have provided for the question is zero? when do we decide if the face value is zero in our calculations?

PL Cappy Ltd. leased equipment to Swen Company on July 1, 2019. The terms of the lease are: Lease term Economic life of equipment Fair market value of equipment Guaranteed residual value 8 years 10 years $120,000 $15,000 $0 Expected payout under guaranteed residual Expected residual at end of economic life $0 Annual lease payment, due each July 1 Lessee's incremental borrowing rate (implicit rate unknown) $16,000 6% Swen uses straight-line depreciation for its property, plant, and equipment, and its year end is December 31 Using BAII Plus: 2nd BGN, 2nd SET, 2nd QUIT, 8N, 6I/Y, 16000 PMT, O FV, CPT PV PX= 105,318; Lease liability = $105,318 - $16,000 = $89,318; ROU asset = $105,318 =