Lessor leases asset to lessee. Lease term is 5 years. Lease payment is $20,000/month + greater of $5,000 or 2% of lessees monthly sales revenue. Lessors implicit rate is 12%/year and this rate is known by lessee. Payments are due at the end of the month. No payment was due at the signing of the lease.

Required 1. Calculate the present value of the lease payments that will be used in measuring the lessee's lease payable.

Please show calculations/explain.