Please explain

Werner Chemical, Inc., eased a protein analyzer on September 30, 2016. The five-year lease agreement calls for Werner to make quarterly lease payments of $407,863, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2016. Werner's incremental borrowing rate is 8%. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The useful life of the equipment is five years. (FV of $1, PW of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the present value of the lease payments at September 30, 2016 Present value 6,802,527