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 $5,200,000, 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 $1,490,000 per year for four years. Assume that the tax rate is 23 percent. Suppose the entire $5,200,000 purchase price of the scanner is borrowed. The rate on the loan is 6 percent, and the loan will be repaid in equal annual installments.

Calculate the amount of annual loan repayment.

Complete the schedules given below and calculate the NAL:

Amortization
Year	Beginning Balance	Total Payment	Interest Payment	Principal Payment	Ending Balance
1
2
3
4

Cash flows
Year	Aftertax Loan Payment	OCF	=	Total Cash Flow
1			=
2			=
3			=
4			=

Calculate NAL: