You are given the following information for a healthcare company:

1 Total revenue 24,000,000

2 Total non-capital costs 18,000,000

3 Capital equipment purchase price and original market value 17,000,000

4 Equipment salvage value, as percent of purchase price 12%

5 Depreciable life of the capital equipment, years 16

6 Annual return on capital invested in a similarly risky investment 9%

1. Assuming that the tax laws require accountants to use a 10-year straight-line depreciation of the original purchase price net of the salvage value (e.g., a $10,000 piece of equipment with a salvage value of $1,000 would have annual depreciation of ($10,000 - $1,000)/10 = $900), calculate the annual accounting profits.