Montevallo Corporation leased equipment from Folio Company. The lease term is $10$ years, requires payments of $$25,000$ at the end of each year, and contains a bargain purchase option. At the end of the lease, Montevallo has an option to pay $$4,000($which is significantly less than the estimated fair value at that time$)$ to purchase the equipment. The equipment has a fair value at the inception of the lease of $$175,000$ and an estimated useful life of $20$ years. The lease agreement stipulates that Folio receive a rate of return of $8\%$ each year. Montevallo's incremental borrowing rate is $10\%$ each year.

Calculate the present value of the lease payments. For interim computations, carry amounts out to two decimal places. Round your final answe to the nearest dollar. $($Click here to access the PV tables to use with this problem.$)$