Assume that your company does not contemplate paying taxes


You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner costs $5,700,000, 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 $2,475,000 per year for three years.

Assume that your company does not contemplate paying taxes for the next several years. You can borrow at 15 percent before taxes. What is the NAL of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NAL $

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Financial Management: Assume that your company does not contemplate paying taxes
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