2.99 See Answer

Question: You work for a nuclear research laboratory


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 $4.3 million, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for $1.275 million per year for four years.
What would the lease payment have to be for both lessor and lessee to be indifferent about the lease?


2.99

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