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 $3,000,000, and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $1,050,000 per year for four years. Assume that your company does not anticipate paying taxes for the next several years. You can borrow at 6 percent before taxes. What is the NAL of this lease? (Do not round your intermediate calculations.)

rev: 09_22_2012

$750,000

$-606,442.85

$-670,278.94

$-638,360.89

$-809,594.19