You work for a nuclear research laboratory that is contemplating leasinga diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner costs $6.1 and would be depreciated straight-line to zero over four years. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $1,765,290 per year for four years.

Assume that the tax rate is 23%. You can borrow at 10.26% before taxes. What would be the cashflowsfor the leasee?

HINT: Determine the cashflowsif you lease, and send those cash flows to the present. Remember that the cash flows are negative as the leaseeis paying.