Exercise 21A-3 a-g (Part Level Submission) Metlock Company leases an automobile with a fair value of $11,845 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $240 per month (at the beginning of each month. (The present value at 0.5% per month is $10,648.) 3. Metlock guarantees a residual value of $1,240 (the present value at 0.5% per month is $966). Metlock expects the probable residual value to be 1,240 at the end of the lease term. Estimated economic life of the automobile is 60 months. Metlock's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 4. 5. (b) Your answer is incorrect. Try again. What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, e.g. 5,275.) Present value of the lease payments 11614