Air Atlantic (AA) has been offered a 3-year old jet airlinerunder a 12-year leas

Air Atlantic (AA) has been offered a 3-year old jet airlinerunder a 12-year lease arrangement. The lease requires AA to makeannual lease payments of $500000 at the beginning of each of thenext 12 years. Determine the present value of the lease payments ifthe opportunity cost of funds is 14 percent.