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 $6,000,000 and would be depreciated straight-line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. Assume that the tax rate is 21 percent. You can borrow at 6 percent before taxes. What would the lease payment have to be for both the lessor and the lessee to be indifferent about the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even lease payment

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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Bhupatbhai 

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 $6,000,000 and would be depreciated straight-line to zero over six years.
Because of radiation contamination, it will actually be completely valueless in six years.
Assume that the tax rate is 21 percent. You can borrow at 6 percent before taxes. What
would the lease payment have to be for both the lessor and the lessee to be indifferent
about the lease? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
Break-even lease payment
Transcribed Image Text: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 $6,000,000 and would be depreciated straight-line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. Assume that the tax rate is 21 percent. You can borrow at 6 percent before taxes. What would the lease payment have to be for both the lessor and the lessee to be indifferent about the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even lease payment
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