Question $2$

You are the CFO for a major hospital and must decide whether you want to

Lease or Buy a new diagnostic scanner. If the cost is $$5MM$ and you can

depreciate it $($straight line$)$ over $4$ years with a zero residual value. If the

annual Lease Payments are $$1\mathrm{.}4M\frac{M}{?}$ year, what are your future annual cash

flows $($assuming a $21\%$ tax rate$)$ for the Lessor?

Make sure you do not add any dollar signs or commas to your answer. Just

put in the whole number of dollars $($no need for cents here$).$