Final answer:
The lessee's capitalized amount is the present value of the annual rental payments plus the present value of the guaranteed residual value. Present value calculations assess the value of future amounts in the current context using an interest rate. The finalized capitalized lease amount combines these present values.
Step-by-step explanation:
The computation of the lessee's capitalized amount is the sum of the present value of the annual rental payments and the present value of the guaranteed residual value. When we calculate the present value, we are determining what future cash flows are worth in today's dollars, considering a specific interest rate, which in this context may be referred to as the discount rate.
To compute the capitalized amount, you first calculate the present value of each annual rental payment using the given interest rate. Then, you also calculate the present value of the guaranteed residual value, which is the amount the lessee is guaranteed to pay or expected to be able to sell the asset for at the end of the leasing term. After these values are calculated separately, they are then added together to get the final capitalized lease amount.