Question
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
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 6400000 and would be depreciated straight line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. Assume that the tax rate is 25 percent. You can borrow at 7 percent before taxes. What would the lease payment have to be for both the lessor and the lessee to be indifferent about the lease. Break-even lease payment
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