3. 3.

Finding the break-even payment [LO 27.3] What would the lease payment have to be for both lessor and lessee to be indifferent about the lease? 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.