On December 31, 2019, Tamarisk Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Tamarisk to make annual payments of $12,017 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 8 years and a $6,100 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Tamarisk uses the straight-line method of depreciation for all of its plant assets. Tamarisks incremental borrowing rate is 7%, and the lessors implicit rate is unknown.

Compute the present value of the lease payments.