The Hegan Corporation plans to lease a $900,000 asset to the Doby Corporation. The lease will be for 10 years. Lease payments are payable at the beginning of the year. Use Appendix D.

a. If the Hegan Corporation desires a 10 percent return on its investment, how much should the lease payments be? (Round "PV Factor" to 3 decimal places. Round the final answer to the nearest whole dollar.)

Lease payment $

b. If the Hegan Corporation is able to generate $130,000 in immediate tax shield benefits from the asset to be purchased for the lease arrangement and will pass the benefits along to the Doby Corporation in the form of lower lease payments, how much should the revised lease payments be? Continue to assume the Hegan Corporation desires a 10 percent return on the 10-year lease. (Round "PV Factor" to 3 decimal places. Round the final answer to the nearest whole dollar.)

Revised lease payment $