what is the annual depreciation tax shield? a) 170,000.00 b) 132,500.00 c) 138,458.00 d) 109,015.00 e)270,381.00

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 $2,000,000 and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $600,000 per year for 4 years. Assume the tax rate is 34 percent. You can borrow at 8 percent before taxes