Use the Following Information to Answer the Question(s)below

question 8

Multiple Choice

Use the following information to answer the question(s) below.
Assume that it is 2012 and Rearden Metal is considering the purchase of a new blast furnace costing a total of $5 million.This furnace will qualify for accelerated depreciation: 20% can be expensed immediately,followed by 32%,19.2%,11.52%,11.52% and 5.76% over the next five years.However,because of Rearden's substantial tax loss carryforwards,Rearden estimates its marginal tax rate to be only 10% over the next five years.Since Rearden will get very little tax benefit from the depreciation expense,they consider leasing the furnace instead.Suppose that Rearden and the lessor face the same 8% borrowing rate,but the lessor has a 40% marginal tax rate.Assume that the furnace is worthless after five years,the lease term is five years,and a lease would qualify as a true tax lease.
-Assuming that Rearden's annual lease payments are $1.1 million,then Rearden Metal should:

• A)lease the furnace since the amount saved in year zero from leasing is greater than the amount of the lease equivalent loan.
• B)buy the furnace since the amount saved in year zero from leasing is greater than the amount of the lease equivalent loan.
• C)lease the furnace since the amount saved in year zero from leasing is less than the amount of the lease equivalent loan.
• D)buy the furnace since the amount saved in year zero from leasing is less than the amount of the lease equivalent loan.

Identify the role of cognitive-behavioral therapy (CBT) in treating mental health disorders.

Understand the concept of counterconditioning and its application in therapy.

Comprehend the mechanisms through which psychotherapy aims to alter maladaptive thought patterns.

Describe the application and outcome of aversion therapy in treating addictive behaviors.

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Definitions:

Obsessive-compulsive Personality

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control.

Workaholic

A workaholic is an individual who compulsively works excessive hours, often to the detriment of personal relationships and health, driven by an internal need rather than external demands.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association that categorizes and describes all recognized mental health disorders.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a classification and diagnostic tool used by mental health professionals to assess and diagnose mental disorders.