**(a) Initial lease liability**

\[
\text{PV} = \sum_{t=1}^{5}\frac{25{,}000}{(1.07)^t}
\]

\[
= 25{,}000\left(\frac{1-(1.07)^{-5}}{0.07}\right)
= 25{,}000(4.100197436)
= 102{,}504.9359
\]

\[
\boxed{\$102{,}504.94}
\]

**(b) Initial right-of-use asset**

With no initial direct costs, lease incentives, prepaid lease payments, or restoration costs:

\[
\boxed{\$102{,}504.94}
\]

**Accounting standard:** **AASB 16 Leases**