2. 2.

Leasing cash flows [LO 27.3] What is the NAL of the lease from the lessor’s viewpoint? Assume a 30 per cent tax rate. You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, hightech equipment). The scanner costs $4 800 000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for

$1 430 000 per year for four years.