lease question

Alumni Company leased machinery with a fair value of $120,000 on December 31, 2005. The agreement calls for six non-cancellable lease payments of $25,000 beginning December 31, 2005. Alumni- incremental borrowing rate is 11%, and knows the implicit interest rate in the lease payments is 10%. On its December 31, 2005 balance sheet, Alumni should report a leased asset closest to: A. $117,398. B. $119,770. C. $120,000. D. $150,000. The answer is B. Why?

Put calculator in BGN mode - 1st payment is due same day as lease is signed. then pmt 25000 i/y 10 N 6 cpt PV - 119,769

Unbelievably stupid mistake! Thanks. I’ve been staring at the screen for 20 minutes.