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You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner
You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner costs $4,890,000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $1,480,000 per year for four years. Assume that the tax rate is 35 percent. You can borrow at 9 percent before taxes. Assume that lease payments are made at the end of the year. a. Calculate the NAL. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NAL $ 827,812.34 b. Should you lease or buy? Lease O Buy
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