You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner costs $4,500,000, and it would be depreciated straight-line to zero over three years. Because of radiation contamination, it will actually be completely valueless in three years. You can lease it for $1,925,000 per year for three years. Assume that the tax rate is 35 percent. You can borrow at 14 percent before taxes. Calculate the NAL. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NAL Should you lease or buy? Lease Buy Quartz Corporation is a relatively new firm. Quartz has experienced enough losses during its early years to provide it with at least eight years of tax loss carryforwards. Thus, Quartz's effective tax rate is zero. Quartz plans to lease equipment from New Leasing Company. The term of the lease is five years. The purchase cost of the equipment is $1,030,000. New Leasing Company is in the 30 percent tax bracket. There are no transaction costs to the lease. Each firm can borrow at 11 percent. a. What is Quartz's reservation price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Reservation price $ 278687.4 b. What is New Leasing Company's reservation price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Reservation price