A firm is considering the purchase of a new equipment costing $5,830,175 which qualifies for a 32% CCA rate. This equipment has a 4-year life after which it can be sold for $1,182,680. The firm can lease it for $1,772,180 per year for its useful life. Assume that the firm makes payments at the end of the year, the asset pool remains open, the tax rate is 34%, and the pre-tax cost of borrowing is 8.74%. What is the break-even lease payment?

1) 1,177,133

2) 1,208,947

3) 1,240,762

4) 1,272,576

5) 1,304,391