Lease B . The fair value of the equipment is $700,000 at the inception of the lease. . The lease term is five years. . Annual lease payments are $145,000 per year. Payments are due at the beginning of each lease year. . The lessee is offered a purchase option for the asset for $18,000 at the end of the lease term which is expected to be exercised. . The lease payments include the cost of insurance, estimated at $12,000 per year. . The lessor's implicit rate of interest in the lease is 6% is known to the lessee. The lessee's incremental borrowing rate is 8%. Required: Calculate the present value of the right of use assets for each lease