These multiple choice questions require present value information. Santa Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into leases for certain facilities. Assume that Santa's incremental borrowing rate is 8%. The company's tax rate is 40%. Listed below are selected financial data for Santa and a portion of the company's lease footnote. Year 2 Year 1 Year 0 Property, Plant, & Equipment (net) $2,882,468 $2,717,453 $2,658,214 Total Assets 3,756,854 3,405,484 3,254,896 Common Shareholders' Equity 867,992 652,626 587,951 Sales $2,922,915 $2,415,632 Cost of Goods Sold 2,016,811 1,642,630 Depreciation Expense 78,584 67,542 Interest Expense 106,663 90,343 Net Income 248,448 217,407 Santa Corp. Operating Lease Disclosure (amounts in thousands) Operating Lease Commitments at the end of Year 1 Year Reported Lease Commitments Year 3 $148,239 Year 4 $252,800 Year 5 $278,327 Year 6 $279,210 Year 7 $285,452 Beyond Year 7 $2,471,600 36. Using the information provided by Santa Corporation, estimate the average life of the leases. a. 8.66 years b. 13.66 years c. 10 years d. Not able to determine