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%.

Determine the net amount to be amortized for the projector.

2,649,254

2,375,501

1,754,389

1,624,294

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

473,323

647,294

328,493

547,549

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

649,528

744,632

788,872

899,254