Shamrock Company leases an automobile with a fair value of $13,187 from David Motors, Inc, on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $260 per month (at the beginning of each month). (The present value at 0.5% per monthis $11.535) 3. Shamrock guarantes a residual value of $8.770 (the present value at 0.5% per month is $1.379 ). Shamreck expects the probable residual value to be $1,770 at the end of the lease term. 4. Estimated economic fife of the automobile is 60 months. 5. Shamrock's incremental borrowing rate is 6% a year (0.50\% a month). David's implicit rate is unknown, Click here to view facter tables. (For calculation purposes, use 5 deciniol places as displayed in the foctor table provlded). (a) What is the nature of this lease to Shamrock? The nature of this lease is avan Shamrock Company leases an automobile with a fair value of $13,187 from David Motors, Inc, on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $260 per month (at the beginning of each month). (The present value at 0.5% per monthis $11.535) 3. Shamrock guarantes a residual value of $8.770 (the present value at 0.5% per month is $1.379 ). Shamreck expects the probable residual value to be $1,770 at the end of the lease term. 4. Estimated economic fife of the automobile is 60 months. 5. Shamrock's incremental borrowing rate is 6% a year (0.50\% a month). David's implicit rate is unknown, Click here to view facter tables. (For calculation purposes, use 5 deciniol places as displayed in the foctor table provlded). (a) What is the nature of this lease to Shamrock? The nature of this lease is avan