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 $7,500,000, Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $2,205,000 per year for four years. Assume that the tax rate is 22 percent. You can borrow at 8 percent before taxes. Assume that the scanner will be depreciated as three-year property under the MACRS depreciation.

What is the NAL of the lease?

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