Acme has branched out to rentals of office furniture to start-up companies. Consider a $3,000 desk. Desks last for six years and can be depreciated immediately. Assume that lease rates for old and new desks are the same and that Acmes pretax administrative costs are $400 per desk in each of years 1 to 6. The cost of capital is 9% and the tax rate is 21%. Lease payments are made in advance, that is, at the start of each year. The inflation rate is zero.

What is the break-even operating lease rate for a new desk? (Hint: Since lease payments are made at the beginning of the year, use annuity due.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)