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TigerCorp plans to add a new internet server, which has a price of $ 2 . 5 million. TigerCorp expects that the internet server will

TigerCorp plans to add a new internet server, which has a price of $2.5 million. TigerCorp expects that the internet server will be worthless after three years. The marginal tax rate for TigerCorp is 15%. The tax authority approves that the new internet server can use the accelerated depreciation: TigerCorp can depreciate 50%,30%, and 20% of the value of the internet server in the next three years. Assume that the cost of debt for TigerCorp is 6%, and its cost of equity is 10%. If TigerCorp uses this internet server through a true tax lease for three years, instead of direct purchasing, the annual lease payments will be $1.4 million. The amount of the lease-equivalent loan is closest to:
Select one:
a. $2.43 million
b. $3.37 million
c. $2.55 million
d. $3.58 million

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