(Solved): The Richmond Corporation has just signed a 144 -month lease on an asset with an 18-year life. The mi ...

The Richmond Corporation has just signed a 144 -month lease on an asset with an 18-year life. The minimum lease payments are \( \$ 3,000 \) per month ( \( \$ 36,000 \) per year) and are to be discounted back to the present at an 8 percent annual discount rate. The estimated fair value of the property is \( \$ 290,000 \). Use Appendix D. Note: Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to nearest whole dollar. Negative answer should be indicated by a minus sign. Enter the answer in whole dollars, not in millions. Omit \$ sign from the answer. a. Calculate the net present value. Net present value \$ b. Should the lease be recorded as a capital lease or an operating lease? Capital lease Operating lease