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 $6,000,000, and it would be depreciated straight-line to zero over five
years. Because of radiation contamination, it actually will be completely valueless in five
years.
You can borrow at 7 percent before taxes. Your company does not anticipate paying
taxes for the next several years, but the leasing company has a tax rate of 25
percent. Over what range of lease payments will the lease be profitable for both
parties? (Do not round Intermediate calculations. Enter your answers from lowest to
highest rounded to 2 decimal places, e.g., 32.16.)
? Answer is not complete.
Total payment range
$
1,460,586.53
to