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The management for a nuclear research laboratory is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The

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The management for a nuclear research laboratory is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs RM5,800,000 and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it will be completely valueless in four years. Jonni Leasing Company has offered to lease the scanner for payments of RM1,740,000 per year for four years. Jonni's policy is to require its lessee to make payments at the start of the year.

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