Ivanhoe Inc. leased equipment from Tower Company under a four-year lease requiring equal annual payments of $224152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Ivanhoe, Inc.s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Ivanhoe, inc.) is 8%. Assuming that this lease is