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 cost $5,100,000 and would be depreciated straight line to zero over four years. because of the radiation contamination, it will actually be completely valueless in four years. You can lease it for $1.45 million per year for four years. Assume the tax rate is 22% the borrowing rate is 6% before taxes.

Your company does not expect to pay taxes for the next several years but the leasing company will pay taxes. Over what range of lease payments will the lease be profitable for both parties?