Response to the following problem:
(Ignore income taxes in this problem.)
Tweedie Corporation has entered into a 7 year lease for a building it will use as a warehouse. The annual payment under the lease will be $1,662. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. What is the present value of the lease payments if the discount rate is 13%?
Provide step by step calculations.