Question
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
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 $6.3 million and it qualifies for a 30% CCA rate. Because of radiation contamination, it is valueless in four years. You can lease it for $1.875 million per year for four years. Assume that the assets pool remains open and payments are made at the end of the year. Assume a 37% tax bracket. You can borrow at 8% pre-tax.
What are the cash flows from the lease from the lessor's point of view? (Enter the answer in dollars and not in millions of dollars. Do not round intermediate calculations. Round the final answer to 2 decimal places. Input the amount as positive value. Omit $ sign in your response.)
(Click to select) Loss Gain for the lessor $
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