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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

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 $4,730,000, and it 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 $1,450,000 per year for four years. Assume that the tax rate is 35 percent. You can borrow at 10 percent before taxes. Assume that lease payments are made at the end of the year.
a. Calculate the NPV.(Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
NPV $
b. Should you lease or buy?
Buy
Lease
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