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 $$2,000,000$ and it would be depreciated straight$-$line to zero over $4$ years.

Because of radiation contamination, it will actually be completely valueless in $4$ years.

You can lease it for $$600,000$ per year for $4$ years. Assume the tax rate is $33$ percent.

You can borrow at $7$ percent before taxes. What is the net advantage to leasing $($NAL$)$

from your company's standpoint?