the table is given below!

Lester decides that Leslie's lease is too expensive. He goes to Larry, Leslie's competitor, to get a competing bid. Larry offers Lester the same lease contract except for the following terms that are changed. ASSET CONFIGURATION: Generic, no customization FAIR VALUE of GENERIC ASSET $75,000 (customization increases value in the short-term) RESIDUAL VALUE at end of the Lease Term: $15,000 (this is Larry's assumption, it is not a lease term) (not incorporated in the lease contract) LEASE TERM: 2 years ECONOMIC UFE OF THE ASSET: ANNUAL LEASE PAYMENT: 5 years this is Larry's assumption, his CPA agrees; keeping the asset generic prolongs its economic life) $ 20,000, made at the beginning of each year 3% (Larry thinks he is undercutting Leslie!) LARRY's (the Lessor's) Implied Rate: a. What is the present Value of the new two year lease from Lester's perspective? b. What will be the annual lease expense on Lester's Income Statement under this arrangement for each of the two year lease term - assume it is in fact an Operating Lease? C. Is Larry right about undercutting Leslie by using a lower "lessor's rate"? Explain d. Consider the Lease Classification Tests. Why is this lease a "Lessee's Operating Lease Present Value & Annuity Factors from Chapter 6 of Kieso, et. al.'s Intermediate Accounting 16th Edition FACTORS YEAR PRESENT VALUE of 1 FUTURE VALUE of 1 PV of ORDINARY ANNUITY of 1 PV of ANNUITY DUE of 1 " TABLE 6 2 Table 6-1 Table 64 Table 6-5 Payments at End Payments at Berpinning Discount 3% 4% 4% 5% 4% 5% 3% 4% Rates 1 .97087 .96154 1.04000 1.05000 .96154 .95238 1.00000 1.00000 1.97087 2 .94260 .92456 1.08160 1.10250 1.88609 1.85941 3 .91514 .88900 1.12486 2.77509 2.72325 1.15763 1.21551 1.96154 2.88609 3.77509 4.62990 4 .88849 .85480 1.16986 3.62990 2.91347 3.82861 4.71710 3.54595 4.32948 5 .86261 .82193 1.21665 1.27628 4.45182