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 $2,000,000, and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $500,000 per year for four years. Assume that your company does not anticipate paying taxes for the next several years. You can borrow at 8 percent before taxes. What is the NAL of this lease? Multiple Choice $343,936.58 $241,751.38 $326,739.75 $500,000 $361,133.41
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 $2,000,000, and it would be depreciated straight-line to zero over 4 years. Because of radiation contamination, it will actually be completely valueless in 4 years. You can lease it for $500,000 per year for four years. Assume that your company does not anticipate paying taxes for the next several years. You can borrow at 8 percent before taxes. What is the NAL of this lease? Multiple Choice $343,936.58 $241,751.38 $326,739.75 $500,000 $361,133.41
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
Section: Chapter Questions
Problem 1PS
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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 $2,000,000, and it
would be depreciated straight-line to zero over 4
years. Because of radiation contamination, it will
actually be completely valueless in 4 years. You can
lease it for $500,000 per year for four years. Assume
that your company does not anticipate paying taxes
for the next several years. You can borrow at 8
percent before taxes. What is the NAL of this lease?
Multiple Choice
$343,936.58
$241,751.38
$326,739.75
$500,000
$361,133.41
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