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 4 years. Assume the tax rate is 31 percent. You can borrow at 7 percent before taxes.

What is after tax cost of lease payment?

	$621,000.00
	$900,000.00
	$521,000.00
	$821,000.00
	$921,000.00