Use the following information for questions 18 through 20. Hay Corporation leased a machine from Marly Rentals Co. on January 1, 2008 for the purpose of being used in its manufacturing operations. The following data pertain to the lease agreement: (a) The term of the non-cancelable lease is 3 years with no renewal option and no residual value. Payments of $155,213 are due on December 31 of each year. The present value of the future lease payments is $400,000 at January 1, 2008. (b) The fair value of the machine on January 1, 2008, is $400,000. The machine has a remaining economic life of 4 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c) Hay depreciates all machinery it owns on a straight-line basis. (d) Hay has knowledge of the 8% implicit interest rate used by Marly. 18. What type of lease is this from Hay Corporation's viewpoint? Finance lease Operating lease Sales-type lease Direct-financing lease