L ease vs. Borrow Return to the case of the diagnostic scanner discussed in Problems 1 through

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L ease vs. Borrow Return to the case of the diagnostic scanner discussed in Problems 1 through 6.

Suppose the entire $5,200,000 purchase price of the scanner is borrowed. The rate on the loan is 8 percent, and the loan will be repaid in equal installments. Create a lease-versus-buy analysis that explicitly incorporates the loan payments. Show that the NPV of leasing instead of buying is not changed from what it was in Problem 1.

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