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Question 4 (20 marks) You work for a research center that is contemplating leasing a diagnostic scanner. The scanner costs $3.5 million and it would

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Question 4 (20 marks) You work for a research center that is contemplating leasing a diagnostic scanner. The scanner costs $3.5 million and it would be depreciated straight-line to zero over 4 years. The scanner will actually be completely valueless after 4 years of usage. You can lease it for $875,000 per year for 4 years. Assume the tax rate is 33 percent. You can borrow at 10 percent before taxes. -What is the net advantage to leasing from your company's standpoint? (8 marks) n. What is the net advantage to leasing from the lessor's viewpoint? ( 2 marks) . How much would the lease payment have to be in order for both the lessor and the lessee to be indifferent about the lease? (10 marks)

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