Problem 1 BIGMACHINEMAKER (BMM) manufactures large production equipment for the auto industry. Some of MBB's customers finance their equipment purchases through leasing arrangements with BMM. On January 1, 2020, LITTLECARMAKER (LCM) inquired regarding the terms of a lease for one of BMM's machines, the ALLINONE (AIO). The cost of production of the AIO is $450,000 and BMM typically sells the machine for $825,000. LCM would like to lease the AIO for 10 years. The AIO has a useful life of 15 years, and BMM estimates the salvage value for the AIO after 10 years will be $250,000. The lease arrangement would not include a guarantee of the residual value by LCM and would require annual payments at the end of each lease year. BMM's implicit interest rate on its leases has recently been 8%. Calculate the annual lease payment for this lease