QUESTION #1

QUESTION #2

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 $7,890,000, 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 $2,375,000 per year for four years. Assume that the tax rate is 35 percent. Suppose the entire $7,890,000 purchase price of the scanner is borrowed. The rate on the loan is 8 percent, and the loan will be repaid in equal annual installments Calculate the amount of annual loan repayment. (Round your answer to 2 decimal places. (e.g., 32.16)) Payment Complete the schedules given below and calculate the NAL. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16) Amortization Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance Year 2 4 Cash flows Aftertax Loan Payment Total Cash Flow Year OCF 2 4 NAL