Determining the Implicit Rate in the Lease. Assume that you are given the following information for a 5-year lease (with payments due on January 1 of each year): The lease payments are $60,000 per year. The fair value of the underlying asset is $500,000. The deferred initial indirect costs of the lessor are equal to $25,000. The lessor's estimated residual value in the underlying asset is $350,000. What is the implicit rate in the lease