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 $6,000,000, and it would be depreciated straight-line to zero over three years. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $2,190,000 per year for three years.
Assume that your company does not anticipate paying taxes for the next several years. You can borrow at 6 percent before taxes. What is the NAL of the lease?