you work for a nuclear research laboratory that is contemplating a diagnostic scanner. The scanner cost $3000000 and it would be derpreciated 20% reducing balance. At the end of four years, the scanner will have zero value. You can lease it for $895000 per year for four years.
1. Lease or buy: Assume that the tax rate is 28%. You can borrow at 8% before taxes. Should you lease or buy?