Pixel produces industrial projectors that are used in stadiums. Stadiums around the country lease these projectors. Pixel requires 15% after-tax required return on its lease contracts. A specific projector is valued at $3,000,000 and is usually leased for 10 years. Pixel depreciates the projector on a straight-line basis of $300,000 a year. Pixel expects that the projector will have a salvage value of $150,000 at the end of the lease period. Pixels income tax rate is 40%.

A. Determine the net amount to be amortized for the projector.

B. Determine the annual after-tax lease payment for the projector.

C. Determine the annual before-tax lease payment for the projector.