what is the net advantage to leasing ( NAL) from your company's standpoint?

a) -5,977.44 b) 5,977.44 c) 6,276.31 d) 5,678.57 e) 125,336.21

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