Pepper, Inc. agrees to lease equipment from the Blue Corporation for 3 years at 25,000 at the end of each year. The equipment has a fair value of 80,000 and an estimated useful life of 5 years. The lease includes a guaranteed residual value of 10,000. Pepper can finance this lease with its bank at a 12% interest rate. The lessor's implicit lease rate, known to the lessee, is 10%. Upon acquisition, the leased equipment will be valued on Pepper's balance sheet at (round all calculations to the nearest whole amount.):

a. 100,979.

b. 69,684.

c. 80,000.

d. 68,440.

e. 62,171.