You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing...
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Accounting
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 million 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. Assume the tax rate is 33 percent. You can borrow at 6 percent before taxes. How much would the lease payment have to be in order for both the lessor and the lessee to be indifferent about the lease?
a. $500,000
b. $521,909
c. $552,200
d. $563,333
e. $576,477
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