Honda and GM are competing to sell a fleet of cars to Hertz. For simplicity, we assume straight$-$ line depreciation and that Hertz will dispose of the cars after five years. Hertz expects that the autos will have no salvage value. Hertz expects a fleet of $50$ cars to generate $$400,000$ per year in pretax income. Hertz is in the $40-$percent tax bracket and the firm$$s overall required return is $10$ percent. The addition of the new fleet will not add to the risk of the firm.

$($a$)$ What is the maximum price that Hertz should be willing to pay for the fleet of cars?