Question: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner ( leasing is a very common practice with expensive, high -

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 $2,000,000 and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $700,000 per year for 4 years. Assume a 32 percent tax bracket. You can borrow at 6 percent before taxes.
What is the net advantage to leasing (NAL) from the lessor's viewpoint?

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