Question: 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

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 $6,000,000, and it would be depreciated straight-line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. You can lease it for $1,200,000 per year for six years. Assume that the tax rate is 21 percent. You can borrow at 6 percent before taxes. Required: (a) Calculate the NAL (b) Would you buy or lease?

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