For the Following Lease,under IFRS,determine the Minimum Present Value Calculation

For the following lease,under IFRS,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 23,150 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 8 \% \\\hline \text { Implicit rate (known to lessee) } & 6 \% \\\hline \text { Guaranteed residual value } & 10,000 \\\hline\end{array}$$

A) 92,431
B) 97,516
C) 99,237
D) 104,989

Correct Answer:

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