The Following Information Relates to a Lease Contract: Inception: 1/1/x1

The following information relates to a lease contract: Inception: 1/1/x1
Annual lease payments of $3,000 due each 12/31 beginning 12/31/x1
End of lease term: 1/1/x5
There are 4 lease payments in all
Useful life of asset at inception: 10 yrs
Expected residual value at 1/1/x5: $6,000
Lessee is given option to purchase asset at 1/1/x5 for $1,000
Using an interest rate of 10%,what is the present value of minimum lease payments for the lessee at inception?

A) $10,193
B) $9,510
C) $10,419
D) $13,608
E) $13,000