The Richmond Corporation has just signed a 144-month lease on an asset with an 18-year life. The minimum lease payments are $3,000 per month ($36,000 per year) and are to be discounted back to the present at an 8 percent annual discount rate. The estimated fair value of the property is $290,000.

a. Calculate the net present value. (Use a Financial calculator to arrive at the answers. Round the final answer to nearest whole dollar.)

Net present value