Each of the four independent situations below describes a sales-type lease in which annual lease payments of $120,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of S1, FVAD of $1 and PVAD of (Use appropriate factor(s) from the tables provided.) Situation 1 2 3 4Lease term (years) 9 9 10 10Lessor's and lessee's interest rate 11$ 13$ 12% 12%Residual value: Estimated fair value 0 $54,000 $8,400 $54,000Guaranteed by lessee 0 0 $8/,400 $64,000Determine the following amounts at the beginning of the lease Round your intermediate and final answer to the nearest whole dollar amount. Answer the missing part. Situation 1 2 3 4A. The lessor's: 1. Lease payments $1,080,000 $1,080,000 $1,200,000 2. Gross investment in the lease $1,080,000 $134,000,000 $1,208,400 1,264,0003. Net Investment in the lease 737,534 713,828 762,095 779,996B. The lessee's 4. Lease payments 1,080,000 1,080,000 1,200,000 5. Right-of-use asset 737,534 713,828 759,390 6. Lease payable 737,534 713,828 759,390

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51