Final answer:
Minimum lease payments may include a penalty for failure to renew, a bargain purchase option, or a guaranteed residual value. In fact, they can include any of these components as part of the contractual agreement of the lease.
Step-by-step explanation:
The student's question pertains to what may be included in minimum lease payments. The answer is that minimum lease payments may include a penalty for failure to renew, a bargain purchase option, a guaranteed residual value, or any of these. The penalty for failure to renew is a fee charged if the lessee decides not to extend the lease. A bargain purchase option allows the lessee to buy the leased property at a price significantly lower than the fair market value at the end of the lease term. A guaranteed residual value is a guarantee made by the lessee that the value of the leased asset will be at least a certain amount at the end of the lease term.