Three independent situations are given. Each describes a finance lease in which annual lease payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price that is sufficiently lower than the expected fair value that the exercise of the option appears reasonably certain. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Situation 2 3 Lease term (years) 5 5 4 Lessor's rate of return Fair value of leased asset Lessor's cost of leased asset 88 98 71 $ 86,000 $ 63,000 $ 433,000 $ 433,000 $ 198,000 $ 158,000 Purchase option: Exercise price $ 23,000 $ 63,000 $ 35,000 Exercisable at end of year: Reasonably certain? 5 5 3 yes no yes Determine the annual lease payments for each situation: Note: Round your intermediate and final answers to the nearest whole dollar amount. Annual lease payments Situation 1 Situation 2 Situation 3 6.0% 7.0% 8.0% 9.0% 10.0% 1.0600 1.0700 1.0800 1.0900 1.1000 2.1836 2.2149 2.2464 2.2781 2.3100 3.3746 3.4399 3.5061 3.5731 3.6410 4.6371 4.7507 4.8666 4.9847 5.1051 5.9753 6.1533 6.3359 6.5233 6.7156 7.3938 7.6540 7.9228 8.2004 8.4872 8.8975 9.2598 9.6366 10.0285 10.4359 10.4913 10.9780 114876 12.0210 12.5795 12.1808 12.8164 13.4866 14.1929 14.9374 13.9716 14.7836 15.6455 16.5603 17.5312 15.8699 16.8885 17.9771 19.1407 20.3843 17.8821 19.1406 20.4953 21.9534 23.5227 20.0151 21.5505 23.2149 25.0192 26.9750 22.2760 24.1290 26.1521 28.3609 30.7725 24.6725 26.8881 29.3243 32.0034 34.9497 27.2129 29.8402 32.7502 35.9737 39.5447 29.9057 32.9990 36.4502 40.3013 44.5992 32.7600 36.3790 40.4463 45.0185 50.1591 35.7856 39.9955 44.7620 50.1601 56.2750 38.9927 43.8652 49.4229 55.7645 63.0025 42.3923 48.0057 54.4568 61.8733 70.4027 58.1564 67.6765 78.9544 92.3240 108.1818 83.8017 101.0730 122.3459 148.5752 180.9434 212 370 7010 258 2019 486 8518