Problem:
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 $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 $2,478,000 per year for three years
Required:
Assume a 35 percent tax bracket. You can borrow at 15 percent before taxes. What is the NAL of the lease from the lessor's viewpoint?
Note: Please show how you came up with the solution.