Period 1 2 3 4 5 6 7 8 9 10 5% 1.00000 2.05000 3.15250 4.31013 5.52563 6.80191 8.14201 9.54911 11.02656 12.57789 6% 1.00000 2.06000 3.18360 437462 5.63709 697532 8.39384 9.89747 11.49132 13.18079 . 1.00000 2.08000 3.24640 4.50611 5.86660 7.33592 8.92280 10.63663 12.48756 14.45656 10% 1.00000 2.10000 331000 4.64100 6.10510 7.71561 9.48717 11.43589 13.57948 15.93743 1.00000 2.12000 3.37440 4.77933 6.35285 8.11519 10.08901 12.29969 14.77566 17.54874 Period 1 2 3 4 5 6 7 8 9 10 Present Value of an Ordinary Annuity of 1 6% 34 95238 943 40 92593 90909 1.85941 1.83339 1.78326 1.73554 2.72325 2.67301 257710 2.48685 3.54595 3.46311 3.31213 3.16986 4.32948 4.21236 3.99271 3.79079 5.07569 4.91732 4.62288 435526 3.78637 5.58235 5.20637 4.86842 6.46321 6.20979 5.74664 5.33493 7.10782 6.80169 6.24689 3.75902 7.72173 7.36009 6.71005 6.14457 89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 On January 1, 2018, Yancey, Inc. signs a 10-year noncancelable lease agreement to 10 2. 7.72173 7.36009 6.71008 6.14457 332025 5.65022 On January 1, 2018, Yancey, Inc. signs a 10-year noncancelable lease agreement to "lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement. (a) The agreement requires equal rental payments at the beginning each year. (b) The fair value of the building on January 1, 2018 is 56,000,000; however, the book value to Holt is $4.950,000. (c) The building has an estimated economic life of 10 years, with no residual value. Yancey depreciates similar buildings using the straight-line method. (d) At the termination of the lease, the title to the building will be transferred to the lessee. (e) Yancey's incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Yancey, Inc. (1) The yearly rental payment includes $15.000 of executory costs related to taxes on the property What is the total annual lease payment? (Example of incorrect answer: 35,000 / $35000 / $35,000 Example of correct answer: 35000 As shown above, no comma or dollar sign is required. If entered, it will be considered as wrong answer.)