On January 1, 2023, Ivanhoe Corp. enters into an agreement with Nicki Rentals Inc. to lease a machine from Nicki Rentals. Both corporations adhere to ASPE. The following data relate to the agreement: 1. The term of the non-cancellable lease is three years with no renewal option. Payments of $557000 are due on December 31 of each year. 2. The fair value of the machine on January 1,2023 , is $1595000. 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. 3. Ivanhoe depreciates all its machinery on a straight-line basis. 4. Ivanhoe's incremental borrowing rate is 10%. Ivanhoe does not have knowledge of the 8% implicit rate used by Nicki. Click here to view the factor table. From Ivanhoe's perspective, what is the present value of the lease payments? (Round present value factor calculations to 5 decimal places, e.g. 1.25124.) $1503137 $1541715 $1579925 $1385175