Q6. The Classy Realty Corporation has just signed a 13 year lease on an asset with 18- year life. The minimum leased payments are 14,400 per year and are to be discounted back to the present at a 7 percent annual discount rate. The value of the property is $159,000. Calculate the present value of the lease payments as a percentage to the value of the property. Should the lease be recorded as a capital lease or an operating lease.