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 $5.2 million and 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 $1.51 million per year for four years. Assume the tax rate is 21 percent.

Suppose the entire $5.2 million purchase price of the scanner is borrowed. The rate on the loan is 8 percent and the loan will be repaid in equal installments.

Calculate the amount of the annual loan repayment. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Complete the schedules given below and calculate the NAL. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Answer is complete and correct. Payment $ 1,570,000.91 X Answer is not complete. Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ 4,046,000.00 5,200,000.00 $ 4,046,000.00 $ 2 $ 1,570,000.00 $ 1,570,000.00 $ 1,570,000.00 $ 1,570,000.00 $ 416,000.00 $ 323,000.00 X $ 224,000.00 $ 117,000.00 X $ 1,154,000.00 $ 1,247,000.00 X 1,346,000.00 1.453,000.00 X 3 $ 4 $ X Answer is not complete. Year OCF Total Cash Flow 1 $ $ 2 $ Aftertax Loan Payment 1,482,000.00 X 1,502,000.00 1,523,000.00 1,545,000.00 X $ 1,393,800.00 X 1,328,600.00 X 1,367,100.00 X 1,209,100.00 X 3 $ $ 4 $ - $ NAL