An Asset with a Market Value of $100,000 Is Leased

An asset with a market value of $100,000 is leased on 1/1/x0.Five annual lease payments are due each January 1 beginning 1/1/x0.The unguaranteed residual value on 12/31/x4, the last day of the lease term, is estimated at $40,000.The lessor's implicit interest rate is 8%.What is the annual lease payment?

A) $25,046
B) $16,877
C) $23,191
D) $18,227