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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

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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 costs $4.3 million. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $1.275 million per year for four years. Assume that the tax rate is 21 percent. You can borrow at 8 percent before taxes. Assume that the scanner will be depreciated as 3-year property under MACRS. What is the NAL of the lease? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

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