Federated Fabrications leased a tooling machine on January 1, 2018, for a three-year period ending December 31, 2020. The lease agreement specified annual payments of $36,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2019. The company had the option to purchase the machine on December 30, 2020, for $45,000 when its fair value was expected to be $60,000, a sufficient difference that exercise seems reasonably certain. The Machine's estimated useful life was six years with no salvage value. Federated was aware that the lessor's implicit rate of return was 12%.

Question: When calculating the right-of-use asset/lease liability for Federated, why do we use the present value of annuity due and not the present value of ordinary annuity (since the payments are made at the end of the year)?