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 $4,800,000 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 $1,190,000 per year for five years.

The tax rate is 23 percent. You can borrow at 8 percent before taxes. What is the NAL of the lease from the lessor's viewpoint?