Wildhorse Cosmetics Inc has entered into a leasing agreement to rent equipment from Pina Leasing Services. There is no transfer of title, there is not a bargain purchase option, and the economic life test is not met. Based on the following information, what amount would be used in the 90% test for the present value of the lease payments for the lessee?

Annual payments (1st day of period) $51800

Lease term- 5yrs

Guaranteed Residual Value $12100

Incremental Borrowing Rate 8%