(a) Initial lease liability:
The lease liability is the present value of an ordinary annuity:
PV = PMT × [(1 - (1 + r)^-n) / r]
PV = 25,000 × [(1 - (1.07)^-5) / 0.07]
PV = 25,000 × [1 - 0.712986178] / 0.07
PV = 25,000 × 4.10019738
PV = $102,504.93

(b) Initial right-of-use (ROU) asset:
Under AASB 16, where there are no initial direct costs, lease incentives, prepaid payments, or restoration costs, the ROU asset equals the initial lease liability.
ROU Asset = $102,504.93

Accounting standard: AASB 16 Leases