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 $6,000,000 and it would be depreciated straight-line to zero over three years. Because of radiation contamination, it will actually be completely valueless in three years. You can lease it for $2,087,000 per year for three years.

Assume a 35 percent tax bracket. You can borrow at 6 percent before taxes. What is the NAL of the lease from the lessor's viewpoint?