Suppose the container pier project in Ch$.7$ is modified as follows:

Initial Investment $=$$$40$ million

Investment Horizon $=12$ years

Residual Value in Year $12=$$$4$ million

Discount rate $=10\%$

$($The operating cash flows are thus removed from the original scenario.$)$

Instead of investing in the pier outright, recovering $$4$ million at the end of the project, you're interested in leasing the pier. Calculate the annual lease payment based on the information provide above.

What annual lease payment would have to be charged to recover the cost of the $$40$ million container pier $($assume a life of $12$ years and a $$4$ million residual value at the end of $12?$