How to calculate lease payments?

3. Lease fair value of $6,074700, der a MMI (the lessee) will lease the same machine, with a fair value of $6,074,700, under a four-year lease that is payable in four annual payments at the beginning of each year. The lessor's implicit rate is 12%. The machine is expected to be returned to the lessor at the end of the lease term and is expected to have a residual value at that time of $1,500,000 a. i. How much would the lease payments be? Fair Value of asset PV of residual value Amount to be recovered through lease payments $6,074,700.00 ($953,277.12 $5,121422.88 Lease payments $1,505,489.98