1 if the lease payment for the machine in question above, Ask an Expert

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1. 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

2. 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

3. 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

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92264578

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