Question: Q 5 . A physics lab is considering leasing a diagnostic scanner that costs $ 5 , 8 0 0 , 0 0 0 ,

Q5. A physics lab is considering leasing a diagnostic scanner that costs $5,800,000, and it would be
depreciated straight-line to zero over four years. Because of radiation contamination, it will actually
be completely valueless in four years. You can lease it for four years. Assume tax rate is 30% for the
leasing company (lessor) and zero for the lab. The cost of borrowing is 8%. Over what range of lease
payments will the lease be profitable for both lessee and lessor?
Q5. A physics lab is considering leasing a diagnostic scanner that

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