points IV Finance Lease for the Lessee Another Caterpillar is leased to a mine operator who insists on using it during its entire lease term. This alone means the lease is a Finance lease for the Lessee The Lessee accepts an annual lease payment made at the start of every year of The lease term is 3 years and represents the useful life of the specialized asset 50,000 The equipment is not expected to have a residual value at the end of the lease term and so there is no guarantee for it. The Lessor will not reveal its implied interest rate. The Lessee subtitutes the risk free rate, because it is a private entity and does not know its borrowing costs (it does not use debt) The risk free rate for a 3 year term is 3% The Annuity Due factor for a 3 year Annuity Due and a 3% yield is What is the present value of the lease? 2.91347 5 points [b] Write the answer in the box. Show the work below. The Lessee adopts straight line amortization for the Amortization Expense for the Right-of-use asset. The annual amortization expense is Write the ansewr in the box. Show the work below. 10 points (c) Show a lease obligation table in this space 10 points (***This is a key deliverable for Module 2 as discussed in the Syllabus***) Display the first entry for this lease at its inception and all the entries during the terre the lease for both the Right of Use asset and the Lease Liability