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\mathrm{.}3$ 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\mathrm{.}275$ million per year for four years.

Assume that the tax rate is $21$ percent. You can borrow at $8$ percent before taxes.

Should you lease or buy?

Need to know depreciation tax shield, aftertax cost of debt, aftertax lease payment, total cash flow, pv of cash flows, and NAL most importantly