On December 31, 2019, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $8,482 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-line method of depreciation for all of its plant assets. Metlocks incremental borrowing rate is 5%, and the lessors implicit rate is unknown. Click here to view factor tables.

(a) . See score details after the due date. What type of lease is this? This is a/an select a type of lease finance lease.

(b) Compute the present value of the lease payments.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.)

Present value of the lease payments = ?