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 $6,300,000. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for $1,795,000 per year for four years. Assume that the tax rate is 25 percent. You can borrow at 6 percent before taxes. Assume that the scanner will be depreciated as three-year property under MACRS. Use Table 10.7.

a.	What is the NAL of the lease? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	Should you lease or buy?

TABLE 10.7 Modified ACRS Depreciation Allowances Property Class Year Three-Year Five-Year Seven-Year 14.29% 1 20.00% 33.33% 24.49 32.00 44.45 2 19.20 17.49 3 14.81 12.49 11.52 7.41 4 8.93 11.52 5 8.92 5.76 6 8.93 7. 4.46 S