DW Leasing Co. recently leased machinery to Tree Building Associates. The 5 year lease contract requires rental payments of $21000 on Jan 1 of each year. The lease meets at least one of the Group I criteria. The 6% implicit rate on the lease is known to Tree Building Associates. There is a $5500 guaranteed residual value by the lessee, which is equal to the expected residual value at the end of the lease term. therefore, there is no unguaranteed residual asset. Compute the present value of the lease payments for DW Leasing Co. and Tree Building.