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 $6,600,000. Because of radiation contamination, it actually willbe completely valueless in four years. You can lease it for $1,895,000 per year for four years. Assume that the tax rate is 23 percent. You can borrow at 6 percent before taxes. Assume that the scanner will be depreciated as three-year property under MACRS. UseTable 10.7.

a.What is the NAL of the lease?(A negative answer should be indicated by a minus sign.Do not round intermediate calculations andround your answer to 2 decimal places,e.g., 32.16.)

b.Should you lease or buy?