Leases Worksheets Part 1: Economics of Leases-Setting Rental Payments suppose that a piece of machinery with a fair value of $40,000 will be leased for four years, with annual rental payments made at the beginning of each year, Determine the amount the lessor will charge for those annual payments under the following scenarios: a) Expected residual value = $8,000, and implicit interest rate = 6%. b) Expected residual value = $8,000, and implicit interest rate = 8%. c) Expected residual value = $0, and implicit interest rate = 8%