Passiflorace Bhd just signed an agreement to lease an embroidery machine as below: Date of arrangement Lease term Fair Value of machine Lease rental payment per annum Lease term Estimated residual value Useful life Interest rate Cancellation policy End of lease term 1 January 2018 Actuarial Method, Payment in Arrears RM115,000 RM50,000 3 years 5 years RM30,000 6% Allowed with 5% penalty on lessee Machine will be return to lessor