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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

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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 $4,600,000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for $1,320,000 per year for four years. Assume that the tax rate is 21 percent. Suppose the entire $4,600,000 purchase price of the scanner is borrowed. The rate on the loan is 6 percent, and the loan will be repaid in equal annual installments. Calculate the amount of annual loan repayment. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payment Complete the schedules given below and calculate the NAL (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16. A negative answer should be indicated by a minus sign.) Beginning Balance Amortization Total Payment Interest Payment Principal Payment Ending Balance Year 1 2 3 4 Cash flows OCF Year Aftertax Loan Payment = Total Cash Flow 1 2 II 1 3 11 4 = NAL

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