Your Company Is Considering the Purchase of a flEet of Cars

question 109

Multiple Choice

Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. You call a leasing
Agent and find that the cars can be leased for $55,000 per year. The corporate tax rate is 34% and
The cars belong in CCA class 10 (a 30% class) , what is the net advantage to leasing?

• A) $6,594
• B) $9,988
• C) $10,134
• D) $15,363
• E) $21,802

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Definitions:

Deviance

Behaviors or actions that diverge from the societal norm, often eliciting negative reactions from the majority.

Health Care Spending

The total amount of money spent on health care services and products within a specific period or by a particular group.

Organ Donor

An individual who offers their organs or tissues for transplantation upon their death.

Lives Saved

The number of individuals whose lives are preserved or prolonged through medical interventions, safety measures, or other actions.