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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 $4,500,000, and it would be depreciated straight-line to zero over three years. Because of radiation contamination, it will actually be completely valueless in three years. You can lease it for $1,925,000 per year for three years. Assume that the tax rate is 35 percent. You can borrow at 14 percent before taxes.

What is the NAL of the Lease?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92745992

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