If the interest rate implicit in the lease is 8%, what is the fair value of the equipment at the inception of the lease (rounded to the nearest dollar)? 

 

A. 

$44 518

B. 

$46 094

C. 

$40 094

D. 

$48 399

31ItTHE28 . Kensington Lid decides to lease some equipment from Piccadilly Lid on the following termsDuration of lease15 yearsLife of leased asset17 yearsUnguaranteed residual$5 090Lease payment$5 090 at lease inceptionAnnual lease payments ( in arrears )$4 500 per year ( 15 payments )If the interest rate implicit in the lease is 8% what is the fair value of the equipment at theinception of the lease ( rounded to the nearest dollar ) ?A. $4 4 518B. $46094C. $40 094D. 548 39 9