$10$

points

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 $$5,000,000$ and it would be depreciated straight$-$line to zero over four

years. Because of radiation contamination, it actually will be completely valueless in four

years. You can lease it for $$1,470,000$ per year for four years. The tax rate is $25$ percent.

You can borrow at $7$ percent before taxes. What is the NAL of the lease from the lessor's

viewpoint? $($A negative answer should be indicated by a minus sign. Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.