Question 47Carter Ltd has entered into a five-year lease agreement for a piece of equipment with a useful life of four years.The lease agreement allows Carter Ltd to extend the lease for an additional three years, though the lease payments for these extra years are not discounted.Additionally, Carter Ltd has the option to terminate the lease one year early by paying a nominal fee.According to IFRS 16, what is the lease term in this scenario?3 years4 years8 years5 years