The lease agreement specifies annual payments of $$21,000$ beginning January $1,2024,$ the beginning of the lease, and on each December $31$ thereafter through $2031.$

The equipment was acquired recently by Crescent at a cost of $$180,000($its fair value$)$ and was expected to have a useful life of $13$ years with no salvage value at the end of its life. Crescent records depreciation using the straight$-$line method.

Because the lease term is only nine years, the asset does have an expected residual value at the end of the lease term of $$76,604.$

Crescent seeks a $8\%$ return on its lease investments.