3. Explain the differences between purchasing an asset and leasing an asset. What are some "good" reasons for opting to lease rather than purchase an asset? What are typical incremental cash flows, and how do you determine the net advantage to leasing? 3. 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 $4.1 million and it would be depreciated straight-line to $50000 over 4 years. You can lease it for $675,000 per year for 4 years. Assume the tax rate is 43 percent. You can borrow at 8.75 percent before taxes. What is the net advantage to leasing from your company's standpoint? (03 marks)