For each of the three independent situations below, determine the amount of the annual rental payments. Each describes a nonoperating lease in which annual rental payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price sufficiently lower than the expected market value. Exercise of the option appears reasonably certain. Please make sure your final answer(s) are accurate to the nearest whole number. Lease term (years) Lessor's rate of return Fair market value of leased asset Lessor's cost of leased asset BPO: Option price Exercisable at end of year: 1 13 7% $490,000 $140,000 Situation 2 5 5% $210,000 $460,000 3 14 11% $350,000 $450,000 $10,000 13 $10,000 4 $60,000 3 a) Calculate the annual repayment for situation 1. Annual repayment for situation 1: b) Calculate the annual repayment for situation 2. Annual repayment for situation 2: c) Calculate the annual repayment for situation 3. Annual repayment for situation 3