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Logistics needs a new color printer. The cost of the printer is $ 2 , 0 7 5 , plus $ 4 0 0 per

Logistics needs a new color printer. The cost of the printer is $2,075, plus $400 per year in maintenance costs(the first maintence cost would occur in 1 year). The color printer will last for five years. Alternatively, a local company offers to lease the printer to RJR and do the maintenance as well. If the discount rate is 6.4%, what is the most RJR would be willing to pay per year to lease the color printer(the first lease payment would be due in one year)?
The most RJR would be willing to pay per year to lease the color printer is closest to:

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