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Please provide correct answer. You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with
Please provide correct answer.
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 $4,700,000 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 $1,380,000 per year for four years. The tax rate is 22 percent. You can borrow at 7 percent before taxes. What is the NAL of the lease from the lessor's viewpoint? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Step by Step Solution
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