Final answer:
The PV of minimum lease payments can include periodic minimum lease payments, guaranteed residual value, and termination penalties, but not all leases will have all three components.
Step-by-step explanation:
The present value (PV) of minimum lease payments may include up to three components which are: the minimum lease payments at the start of the lease, any guaranteed residual value that the lessee has to pay, and any penalty for non-renewal or termination of the lease. However, it is important to note that not all these components will necessarily apply to every lease agreement.
The first component, minimum lease payments, typically consist of the periodic payments that the lessee is obligated to make during the lease term. The second component is any guaranteed residual value, which is an additional amount that the lessee agrees to ensure the lessor will realize at the end of the lease term.
Lastly, a potential termination penalty would apply if the lease allows the lessee to terminate the lease early and requires a penalty payment for doing so.