The present value of the minimum lease payments for Bonita Corporation, which signed a noncancelable lease, is <u>$11,121.35</u>.
<h3>What is the present value of the minimum lease payments?</h3>
The present value of the minimum lease payments is the sum of all of the future lease payments, expressed in present value terms, including the estimated value of the leased asset after the lease period.
The present value of the minimum lease payments can be computed using the PV factor or formula.
It can also be computed using an online finance calculator, as follows:
<h3>Data and Calculations:</h3>
N (# of periods) = 3 years
I/Y (Interest per year) = 11%
PMT (Periodic Payment) =- $4,100
FV (Future Value) = $0
<u>Results</u>:
PV = $11,121.35 ($12,300 - $1,178.65)
Sum of all periodic payments = $12,300 ($4,100 x 3)
Total Interest $1,178.65
Thus, the present value of the minimum lease payments for Bonita Corporation, which signed a noncancelable lease, is <u>$11,121.35</u>.
Learn more about minimum lease payments at brainly.com/question/17164931
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