On January $1,2023,$ Sandhill Corp. enters into an agreement with Nicki Rentals Inc. to lease a machine from Nicki Rentals. Bo

corporations adhere to ASPE. The following data relate to the agreement:

The term of the non$-$cancellable lease is three years with no renewal option. Payments of $$563000$ are due on

December $31$ of each year.

The fair value of the machine on January $1,2023,$ is $$1599000.$ The machine has a remaining economic life of $10$ years

with no residual value. The machine reverts to the lessor upon the termination of the lease.

Sandhill depreciates all its machinery on a straight$-$line basis.

Sandhill's incremental borrowing rate is $10\%.$ Sandhill does not have knowledge of the $8\%$ implicit rate used by Nicki.

Click here to view the factor table.

From Sandhill's perspective, what is the present value of the lease payments? $($Round present value factor calculations to $5$ decim

places, e$.$g$.1\mathrm{.}25124.)$

$$1558322$

$$1596944$

$$1519329$

$$1400097$