An asset has a purchase price of $$2,000,000,$ CCA rate of $30\%,$ and expected salvage value of $$200,000$ at the end of its useful life in $5$ years. The lessor's marginal tax rate is $45\%$ and cost of debt is $10\%.$

a$)$ What is the minimum lease payment due at the beginning of each year acceptable to the lessor?

b$)$The lessee can borrow at $11\%$ and pays no tax. What is the maximum lease payment the lessee would be willing to pay?

The answers to

Part a: L$=$$ $435,366\mathrm{.}10$

Part b: L$=$$ $458,582\mathrm{.}48$