clarification step by step

Problem 1: Myers Company signs a lease of an equipment $120,000 for three years (straightline depreciation without any salvage value) on January 1 and must make payments on the lease on 31 Dec, year 1 , year 2 and year 3 . Interest rate is 8% per annum, and annuity factor is 2.5771 . Year 1, Year 2, and Year 3, assuming this is an operating lease c. Repeat question b, assuming this is a capital lease. d. What is the maximum annual rental payment that Myers can make and still permit this lease to qualify as an operating lease