Exercise 21-2 (Part Level Submission) Waterway Company leases an automobile with a fair value of $16,256 from John Simon Motors, Inc., on the following terms: 1. Noncancelable term of 50 months. 2. Rental of $380 per month (at end of each month). (The present value at 1% per month is $14,895.) 3. Estimated residual value after 50 months is $1,170. (The present value at 1% per month is $711.) Waterway Company guarantees the residual value of $1,170. 4. Estimated economic life of the automobile is 60 months. 5. Waterway Company's incremental borrowing rate is 12% a year (1% a month). Simon's implicit rate is unknown. (b) Your answer is incorrect. Try again. What is the present value of the minimum lease payments? The present value of the minimum lease payments 14579