You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is...

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You work for a nuclear research laboratory that is contemplatingleasing a diagnostic scanner (leasing is a common practice withexpensive, high-tech equipment). The scanner costs $4,900,000 andwould be depreciated straight-line to zero over three years.Because of radiation contamination, it will actually be completelyvalueless in three years. Assume that the tax rate is 25 percent.You can borrow at 7 percent before taxes. What would the leasepayment have to be for both the lessor and the lessee to beindifferent about the lease?

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You work for a nuclear research laboratory that is contemplatingleasing a diagnostic scanner (leasing is a common practice withexpensive, high-tech equipment). The scanner costs $4,900,000 andwould be depreciated straight-line to zero over three years.Because of radiation contamination, it will actually be completelyvalueless in three years. Assume that the tax rate is 25 percent.You can borrow at 7 percent before taxes. What would the leasepayment have to be for both the lessor and the lessee to beindifferent about the lease?