You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $6.7 million and it qualifies for a 30% CCA rate. Because of radiation contamination, it is valueless in four years. You can lease it for $1.975 million per year for four years. Assume that the assets pool remains open and payments are made at the end of the year. Assume the tax rate is 39%. You can borrow at 8% pre-tax. What would the lease payment have to be for both lessor and lessee to be indifferent to the lease?

Before tax lease payment = ?