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 $$4,900,000,$ and it would be depreciated straight$-$line to zero over four years. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $$1,435,000$ per year for four years. Assume that the tax rate is $40$ percent. You can borrow at $8$ percent before taxes. Assume that lease payments are made at the end of the year.

a$.$ Calculate the NPV$.($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

NPV

$

b$.$ Should you lease or buy?

Lease

Buy