Using the following information, compute the beginning of the period annual lease payment that the lessor would have to charge to realize the...

Using the following information, compute the beginning of the period annual lease payment that the lessor would have to charge to realize the required after-tax return.

Asset cost = $15 million

Expected Selling Price at end-of-lease = $2,800,000

Lease life = 5 years

Depreciable life of the asset = 5 years

Depreciation is straight line

Salvage value for tax purposes is, of course, zero

K = 10.5%

T =0.40