The following are some of the characteristics of an asset available for lease: (Click the icon to view the characteristics.) (Click the icon to view the present value factors for a single sum of $1.) (Click the icon to view the present value factors for an ordinary annuity of $1.) Assume that the lessor and lessee apply ASPE. Requirements Characteristics Begin by calculating the present value of the residual value and the value to be recovered by Fair value of leased asset Lease term Payment frequency Amount Fair value of asset Present value of guaranteed residual value Value to be recovered by annual lease payments PV factor an annuity due of 7 yrs at 12% Annual payments required by lessor Requirement b. Compute the present value of minimum lease payments for the lessor. (Use Annual payments Present value of guaranteed residual value PV MLP of Lessor Amount Payment timing Guaranteed residual value $ Interest rate implicit in the lease (known to lessee) Lessee's incremental borrowing rate Print Done 400,000 7 years Annual End of year ations. Enter your final answers as positive amounts rounded to the nearest dollar. Enter PV factor to four decimal places, X.XXX) 25,000 12% 10% t rounded to the nearest dollar.) Requirement c. Compute the present value of minimum lease payments for the lessee. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest dollar.) Annual payments Present value of guaranteed residual value Total Fair value of asset Amount