What is the minimum lease payment (due at the beginning of each year) acceptable to the lessor if the purchase price is $2,000,000, CCA rate is 30%, marginal tax rate is 45%, cost of debt is 10%, WACC is 12%, and expected salvage value is $200,000 at the end of the assets useful life in five years?

(b) Assume the lessee can borrow at 11%, has a WACC of 12%, and pays no tax. What is the maximum lease payment they would be willing to pay?