Question
I have the answer in bold below but I need calculation details for them all. 32. If the lease payment for the machine in Question
I have the answer in bold below but I need calculation details for them all.
32. If the lease payment for the machine in Question above were made in advance, starting at the beginning of the first year of the contract, what would the size of such a payment now be as an equivalent annual cost? A. $71,455 B. $14,644 C. $15,533 D. $15,816
Solution:
33. What is the undepreciated capital cost of $800,000 asset after five CCA calculations of 30% declining balance, with the half-year rule? A. $0 B. $240,000 C. $163,268 D. $145,564
Solution:
34. If a machine costs $50,000, and $5,000 a year for the less or to maintain and insure, what equivalent annual cost would serve as the basis of a full-service lease payment for a six-year operating lease, paid in arrears, if the lessor's cost of capital is 8%? A. $15,816 B. $73,114 C. $17,155 D. $55,000
Solution:
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