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 much 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 the Folio receive a rate of return of 8% each year, which is lower than Montevallo's incremental borrowing rate. Calculate the present value of the minimum lease payments.

For interim computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar.