Q8: You now 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 $5,400,000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, the salvage value would be zero after four years. You can lease it for $1,500,000 per year, payable in advance for four years. Assume that the tax rate is 21 percent. You can borrow at 8 percent before taxes. What's the net present value of leasing? Should you lease or buy? (15") INPUT AREA Answers are high-lighted in yellow. Cost Lefe of machine Leose price Borrowing rote Taxirate OUTPUT AREA 1) Depreciation tax shield Aftertanc cost of debt Aftertax lease poyment Total cosh flow LEASING SAVED CASH FLOW PV for the negative CF in years NPV OF LEASINO BUY aRLEASE