how do i find the PV of rentals and PV of RVG?

The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.

2. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2017, is $700,000.

3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Jensen estimates

that the expected residual value at the end of the lease term will be $50,000. Jensen amortizes all of its leased equipment

on a straight-line basis.

4. The lease agreement requires equal annual rental payments, beginning on January 1, 2017.

5. The collectibility of the lease payments is probable.

6. Glaus desires a 5% rate of return on its investments. Jensen's incremental borrowing rate is 6%, and the lessor's implicit

rate is unknown.