(a) $102,504.94  
Working:  
PV factor for ordinary annuity (n=5, r=7%) = [1 − (1.07)^−5] / 0.07 = 4.10019744  
Liability = 25 000 × 4.10019744 = 102 504.936 → rounded to nearest cent.

(b) $102,504.94 (equals initial lease liability; no adjustments).

AASB 16 *Leases*.