Windsor Company leases an automobile with a fair value of $14,845 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $310 per month (at the beginning of each month). 3. Windsor guarantees a residual value of $1,030. Delaney expects the probable residual value to be $1,030 at the end of the lease term 4. Estimated economic life of the automobile is 60 months. 5. Windsor's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicitrate is unknown. * Your answer is incorrect. What is the present value of the lease payments to determine the lease liability? (Round answer to decimal places, e.g. 5,275.) Present value of the lease payments e Textbook and Media Assistance Used x Your answer is incorrect. Suppose that instead of $1,030, Windsor expects the residual value to be only $500 (the guaranteed amount is still $1,030). How does the calculation of the present value of the lease payments change from part(b)? (Round answer to decimal places, e.g. 5,275.) PV of lease payments $ eTextbook and Media List of Accounts