Examlex

Solved

Zyllane Distributors Has Decided to Acquire a Machine, Which Will

question 10

Multiple Choice

Zyllane Distributors has decided to acquire a machine, which will replace an existing piece ofequipment. The company has the choice between leasing the new machine or purchasing it. Theexisting machine is currently worth $15 000, while the new machine would cost $352 652. With the new machine installed, Zyllane would reduce its costs by $44 800 a year. The new machine would have a useful life of 12 years, qualify for a 10% Investment Tax Credit (ITC) and have a salvage value after 12 years of $50 000. This type of machine qualifies for a 30% CCA rate. For a 10-year lease the annual payment is expected to be $39 566 with the first payment due upon signing the lease contract. Zyllane's cost of capital is 8%, tax rate is 40% and the cost of raising long-term debt is estimated at 9%. What is the Net Present Value of the lease? Round your final answer to the nearest dollar.

Recognize the differences in sleep patterns across different age groups.
Identify and describe various sleep disorders, including their symptoms and impacts on health.
Understand the relationship between sleep patterns and overall health, including longevity.
Describe the stages of sleep and phenomena like sleepwalking and its associated brain activity.

Definitions:

Particular Case

A specific instance or example of a general rule or situation.

Pure Hypothetical

A conditional statement or proposition that is entirely based on speculation rather than factual evidence.

Affirming Consequent

A logical fallacy where the conclusion is erroneously inferred from the premise in the form "If A, then B; B, therefore A."

Fallacy

A flaw in the process of thought that results in an argument being invalid or not solidly reasoned.

Related Questions