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ubmission file format: Word document with all the answers, clearly identifying each case separately. CASE 1 (20 points) You work for a nuclear research laboratory

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ubmission file format: Word document with all the answers, clearly identifying each case separately. CASE 1 (20 points) 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 5,000,000, and it would be depreciated straight-line to zero over five years. Because of radiation contamination, it actually will be completely valueless in five years. You can lease it for 1,000,000 per year for five years. You can borrow at 6 percent before taxes. Assume that the tax rate is 30 percent. Instructions: a. Create a lease-versus-buy analysis. Calculate the NPV of teasing. Should you lease or buy? (10 points) b. What are the differences between an operating lease and a financial lease? Compare ther features. (10 points) CASE 2 (30 points) Look at the following book-value balance sheet for Ursula Corporation. The preferred stock currently sells for C15 pet share and pays a dividend of a share. The 12

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