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 $5,100,000 andwould be depreciated straight-line to zero over four years. Becauseof radiation contamination, it will actually be completelyvalueless in four years. You can lease it for $1,450,000 per yearfor four years. Assume that the tax rate is 22 percent. You canborrow at 6 percent before taxes.

  

Calculate the NAL. (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)

NAL =

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Solution The Net advantage of Leasing NAL is 5746120 57461 when rounded off to the    See Answer
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