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 $5,600,000 andwould be depreciated straight-line to zero over five years. Becauseof radiation contamination, it will actually be completelyvalueless in five years. You can lease it for $1,370,000 per yearfor five years. Assume that the tax rate is 22 percent. You canborrow at 8 percent before taxes. Calculate the NAL. (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.) Should you lease or buy? Buy Lease
