Freedom Corporation leases parachutes to other companies. Freedom has just entered into an agreement with Flying Squad and has asked you to calculate the yearly lease price based on the following information: Asset's FMV at lease inception $500,000 Anticipated residual value at end of lease $60,000 Term of Lease 8 years Asset's Life 10 years Annual Payments due at the beginning of each year Lease begins and first payment due on January 1, 2020 Implicit Rate of Return 8% Incremental Borrowing Rate 9% The residual value is not guaranteed by the lessee. Asset returns to lessor at end of lease. There are no uncertainties concerning future costs and collection is reasonably assured. Calculate the annual lease payment Freedom Corp should charge Flying Squad