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What are two possible risks involved with licensing?
Net Advantage
The benefit that results from a certain business decision, considering all related costs and revenues.
CCA Rate
Capital Cost Allowance rate, which is the percentage used to calculate depreciation for tax purposes on capital assets.
Salvage Value
The estimated resale value of an asset at the end of its useful life, considered in depreciation calculations.
After-Tax Cost of Debt
The net cost of debt to a company after accounting for tax deductions on interest payments, indicating the actual cost of borrowing.
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