Please answer all 4. Thank you!

Southern Equipment leases cooling towers to Heating Corporation. The equipment is not specialized and is delivered on January 1, 2019. The fair value of the equipment is $180,000. The cost of the equipment to Southen is S170,000 and the expected life of the testing equipment is 8 years. At the end of the useful life, it is expected that the equipment will have a residual value of $20,000, although the lessee guarantees only $15,000. Southern incurs initial direct costs of $20,000, which they elect to expense. The lease term for the equipment is 8 years, with the first payment due upon delivery, and seven subsequent annual payments beginning on December 31, 2019 and ending on December 31, 2025. Southern's implicit rate is 8% and they expect that collection of the $31,000 payments is probable. The lease is properly classified as a sales-type lease. What is Southen's implicit rate for the lease? (Round any intermediate calculations to the nearest dollar, and round your final percentage two decimal places. X.XX%) 5. 192,397% 7.55% C 9.8% 10.73%