Question: 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.

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 $3,000,000 and it would be depreciated straight-line to zero over the 4 years.

because of random contamination, it will actually be completely valueless in 4 years. You can lease it for $1,050,000 per year for 4 years. Assume the tax rate is 33 percent. You can borrow at 8 percent before taxes.

What is the net advantage to leasing ( NAL) from your company's standpoint? should you buy or lease??

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