If the current "substantially ALL" test related to whether a lease should be considered a capital lease is met then the LESSEE should capitalize the lesser of: The fair market value or the total interest to be paid over the life of the lease. The fair market value or the periodic payment multiplied by the number of payments to be made over the life of the lease. The fair market value or the projected value of the lease at the end of the lease. The fair market value or the present value of the minimum lease payments.