PV calculation help on part c. How do you compute the value of theease liability to the lessee?

Sarasota Leasing Company agrees to lease equipment to Ivanhoe Corporation on January 1,2025 . The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $485,000, and the fair value of the asset on January 1,2025, is $687,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Ivanhoe estimates that the expected residual value at the end of the lease term will be $60,000. Ivanhoe amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 5. The collectibility of the lease payments is probable. 6. Sarasota desires a 10% rate of return on its investments. Ivanhoe's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Calculate the amount of the annual rental payment required. (Round present valve foctor colculotions to 5 declinal places, es. 1.25124 and the final answer to 0 decimal ploces es. 58,972. Annual rental payment (c) Compute the value of the lease fiability to the lessee, (Round present value foctor calculations to 5 decimal ploces, eg 1.25124 and the final answer to 0 decimal ploces e. 9.58,972. Present value of minimum lease payments