For the Following Lease,determine the Minimum Lease Payments for the Lessee

For the following lease,determine the minimum lease payments for the lessee. $$\begin{array} { | l | l | } \hline \text { Annual lease payment at the end of the end } & \$ 25,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 7 \% \\\hline \text { Implicit rate (knownto lessee) } & 6 \% \\\hline \text { Executory costs } & 2,000 \\\hline\end{array}$$

A) 94,305
B) 96,884
C) 102,505
D) 105,309

Correct Answer:

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