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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, hightech equipment The scanner costs $ million and would be depreciated straightline to zero over four years. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $ million per year for four years.
Assume that your company does not contemplate paying taxes for the next several years. You can borrow at percent before taxes. What is the NAL of the lease? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to decimal places, eg
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