QUESTION3 Partially correct Mark 090 out of 6.00 PFlag question Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2015, are as follows: Years (S millions) Capital Leases $302 278 187 97 45 159 Operating Leases 2,744 2,486 2,211 1,939 1,536 7,297 $18,213 2016 2017 2018 2019 2020 Thereafter Total minimum rental commitments Less interest and executory costs Present value of minimum lease payments Less current installments Long-term obligation at December 31, 2015 1,068 957 271 $686 (a) Using your financial calculator or Excel spreadsheet, confirm that Verizon capitalized its capital leases using a rate of 3.85% Amount IRR 3.85 | % | 3 6 (c) compute the present value of Verizon's operating leases, assuming an 3.85% discount rate and rounding the remaining lease term to 3 decimal places. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.) S millions) Present Value Year 1 Year 2 Year 3 Year 4 Year 5 After 5 Total (Use subsequent rounded answers for calculation.)