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, and it would be depreciated straight-line to zero over five years. Because of radiation contamination, itactually will be completely valueless in five years. You can lease it for $1,530,000 per year for five years. Assume that the tax rate is 23 percent. You can borrow at 7 percent before taxes.

What is the NAL of the lease?(Do not round intermediate calculations andround your answer to 2 decimal places,e.g., 32.16.)

Should you lease or buy?