A retailer sells you a computer printer. As a result, you replace the toner cartridge three times each year. The printer manufacturer would consider future toner cartridge sales resulting from the sale of its printers to be a(an) ________.

Select one:

a. relevant cost or revenue

b. opportunity cost

c. sunk cost

d. externality

e. terminal cost

A business purchases a capital asset for $287,000. The asset will be placed in a 30% CCA asset class and qualify for the Accelerated Investment Incentive. The business has a 40% marginal income tax rate. What is the CCA tax shield (e.g. reduction in taxes) for the third year as a result of owning this asset?

Select one:

a. $13,338

b. $13,321

c. $13,259

d. $13,294

e. $13,329