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You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner ( leasing is a very common practice with expensive, high -

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 $3,000,000, and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $900,000 per year for four years. Assume that your company does not anticipate paying taxes for the next several years. You can borrow at 7 percent before taxes. What is the NAL of this lease?

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