180 Work for & Ruclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $8.1 million and it qualifies for a 30% CCA rate. Because of radiation contamination, it is valueless in four years. You can lease it for $2.4 million per year for four years. You can borrow at 7.5% pre-tax. Assume that the assets pool remains open and the lease payments are made at the beginning of each year. Assume that your company does not contemplate paying taxes for the next several years (assume no taxes will be paid for the next 10 years). Calculate the NAL. (Enter the answer in dollars and not in millions of dollars. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response, if your answer is $123,456.78, then enter 123456.78. If it is $123,456.78, then enter-123456.78) Numeric Response

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Qd 235.

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 $8.1 million and it qualifies for a 30% CCA rate. Because of radiation contamination, it
is valueless in four years. You can lease it for $2.4 million per year for four years. You can borrow at 7.5% pre-tax. Assume that the assets
pool remains open and the lease payments are made at the beginning of each year.
Assume that your company does not contemplate paying taxes for the next several years (assume no taxes will be paid for the next 10
years). Calculate the NAL. (Enter the answer in dollars and not in millions of dollars. Do not round intermediate calculations. Round the
final answer to 2 decimal places. Omit $ sign in your response. If your answer is $123,456.78, then enter 123456.78. If it is -$123,456.78,
then enter-123456.78)
Numeric Response
Transcribed Image Text: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 $8.1 million and it qualifies for a 30% CCA rate. Because of radiation contamination, it is valueless in four years. You can lease it for $2.4 million per year for four years. You can borrow at 7.5% pre-tax. Assume that the assets pool remains open and the lease payments are made at the beginning of each year. Assume that your company does not contemplate paying taxes for the next several years (assume no taxes will be paid for the next 10 years). Calculate the NAL. (Enter the answer in dollars and not in millions of dollars. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response. If your answer is $123,456.78, then enter 123456.78. If it is -$123,456.78, then enter-123456.78) Numeric Response
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