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 $6, 100,000 and would be depreciated straight - line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. You can lease it for $1, 260, 000 per year for six years. Assume that your company does not contemplate paying taxes for the next several years. You can borrow at 7 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.
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 $6, 100,000 and would be depreciated straight - line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. You can lease it for $1, 260, 000 per year for six years. Assume that your company does not contemplate paying taxes for the next several years. You can borrow at 7 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.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 9P
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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 $6, 100,000 and would be depreciated straight - line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. You can lease it for $1, 260, 000 per year for six years. Assume that your company does not contemplate paying taxes for the next several years. You can borrow at 7 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.)
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