What is the NAL of the lease

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Reference no: EM131907323

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 $4,500,000, 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 $1,925,000 per year for three years. Assume that the tax rate is 35 percent. You can borrow at 14 percent before taxes.

What is the NAL of the Lease?

Reference no: EM131907323

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