The lease payments from footnote disclosures of an operating lease Year Lease payments ($) 1. 2. 3. 1,375 1,210 825 Year 4 and after 4,125 Assume a discount rate of 8%. Required: a. Calculate the PV of all the lease payments. (6 marks) b. Assume a 10% discount rate and a tax rate of 25%, so that the PV of all the lease payments is $5,220. Complete the I/S figures Income Statement Effects (6 marks) NOPAT As Reported $1,500 Adjustment Adjusted ?? ?? INT(1-tax rate) NI 475 ?? ?? $1,025