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please do your best for this question .explain it very well as you always. You work for a nuclear research laboratory that is contemplating leasing

please do your best for this question .explain it very well as you always.image text in transcribed

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. It is quite common for companies to lease expensive, high-tech gear. The scanner costs $6.2 million and it qualifies for a 30 percent CCA rate. The equipment will be valueless in four years. You can lease it for $1.890 million per year for four years. Assume that the asset pool remains open and payments are made at the end of the year. a. Assume that the tax rate is 36 percent, and that you can borrow at 7 percent per year pre-tax. Should you lease or borrow? Explain your answer. b. What are the cash flows from the lessor's point of view? Assume a 35 percent tax bracket. c. Go back to .a above. If the asset pool remains open, but the scanner qualifies for a special 45 percent CCA rate per year. Will you lease or buy

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