(a) Initial lease liability:

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

\[
=25{,}000 \times \frac{1-(1.07)^{-5}}{0.07}
\]

\[
=25{,}000 \times 4.1001974357
\]

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

(b) Initial right-of-use asset:

\[
\text{ROU asset}=\text{initial lease liability}=\$102{,}504.94
\]

Accounting standard: **AASB 16 Leases**.