You Work for a Nuclear Research Laboratory That Is Contemplating

question 31

Multiple Choice

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 million 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 $475,000 per year for 4 years.Assume the tax rate is 34 percent.You can borrow at 10 percent before taxes.What is the net advantage to leasing from the lessor's viewpoint?

• A)-$376,439
• B)-$290,988
• C)-$248,464
• D)$26,228
• E)$103,511

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Definitions:

Transmitting Thoughts

The process or method by which ideas or mental images are communicated from one individual to another.

Channels

Refers to the methods or pathways through which communication is delivered and received within organizations or systems.

Productive Conversations

are dialogues characterized by effective communication, collaboration, and the achievement of mutual understanding or goals.

Electronic Communication

The transfer of information between individuals or groups through electronic devices such as computers, phones, and the internet.