Question: 3. 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).

3. You work for a nuclear research laboratory that is contemplating

3. 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 $5,800,000. Because of radiation contamination, it actually.will be completely valueless in four years. You can lease it for $1,690,000 per year for four years. Assume that the tax rate is 25 percent. You can borrow at 7 percent before taxes. Assume that the scanner will be depreciated as three-year property under MACRS. MACRS Table: Property Class Year Three-Year Five-Year Seven-Year 1 33.33% 20.00% 14.29% 2. 44.45 32.00 24.49 3 14.81 19.20 17.49 7.41 11.52 12.49 5 5 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46 a. What is the NAL of the lease? b. Should you lease or buy

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