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| Teaching Since: | Apr 2017 |
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| Questions Answered: | 9562 |
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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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 $7,600,000. Because of radiation contamination, it will actually be completely valueless in four years. You can lease it for $2,255,000 per year for four years. Assume that the tax rate is 35 percent. You can borrow at 8 percent before taxes. Assume that the scanner will be depreciated as three-year property under MACRS. What is the NAL of the lease? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NAL $
MAC-----------RS -----------dep-----------ric-----------iat-----------ion----------- ra-----------tes----------- ( -----------1st----------- Ye-----------ar------------33.-----------33%----------- , -----------2nd----------- ye-----------ar------------44.-----------45%-----------,3r-----------d y-----------ear------------14-----------.81-----------% a-----------nd -----------4th----------- ye-----------ar------------7.4-----------1%)----------- PV----------- of----------- De-----------pri-----------cia-----------tio-----------n i-----------n 4----------- ye-----------ars-----------=0.-----------333-----------3*7-----------600-----------000-----------/(1-----------.08-----------^1)-----------+0.-----------444-----------5*7-----------600-----------000-----------/(1-----------.08-----------^2)-----------+0.-----------148-----------1*7-----------600-----------000-----------/(1-----------.08-----------^3)-----------+0.-----------074-----------1*7-----------600-----------000-----------/(1-----------