A company is faced with the decision of whether to lease or purchase new equipment. The company can purchase the equipment for $3,500,000. The company will be required to pay annual service costs if it leases the equipment. Consider the following: Present Value of Salvage Value = $840,000; Present Value of Annual Service Costs After-tax = $7,000; Present Value of Lease Payments Tax Shield = $392,000; PVCCATS = $910,000; Present Value of Lease Payments Before-tax = $1,960,000. If you were calculating the net advantage to leasing, what amount for the present value of leasing would you include in your analysis?

Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.