Leasing is prevalent among department stores. The following information with respect to operating and capital leases was taken from the 2018 annual reports of H20 Company (H20) and Premium Company (PC). Note that PC discloses the present value (and interest rate) of its operating as well as capital leases. Minimum lease payments (RM millions) H2O PC Capital leases Operating leases | Capital leases Operating leases RM 66 RM 352 RM 10 RM 620 568 56 303 253 54 2014 2015 2016 2017 2018 Thereafter Total Present value Less current portion Long term portion Interest rate 224 195 1,092 RM 2,419 714 1,006 521 492 454 3,099 RM 5,754 3,302 RM RM 27 417 24 (16) 401 10.0% 9.7% Required: a. Using the interest rate provided by PC, calculate H2O's operating leases present value. b. Estimate the interest rate that H2O uses to discount its capital leases. Compare the rate determined in part b with the rate used by PC. c. Use the rate determined in b to estimate the present value of H2O's operating leases. Compare your answer with the present value calculated in a