Maxine's Is Considering Either Purchasing or Leasing a $600,000 Piece

question 8

Multiple Choice

Maxine's is considering either purchasing or leasing a $600,000 piece of specialized equipment. The equipment has a life of 5 years, belongs in a 30% CCA class, and will have no residual value. The cost of debt is 12% for this purchase. A lease on the equipment for 5 years is priced at $150,000 a year. Maxine's corporate tax rate is 34%. The lessor has a tax rate of 35%.

What is the net advantage to leasing for the lessor?

• A) -$18,568
• B) -$17,640
• C) -$17,488
• D) -$16,813
• E) $16,619

Differentiate between online and distance education including their pros and cons.

Describe new developments in online and distance education.

Compare and contrast technology-based training with traditional training methods.

Discuss the concept of self-directed learning and synthetic learning environments, including their benefits, limitations, and examples.

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Definitions:

Operating Activities

These are the day-to-day actions that involve the production, sales, and delivery of a company's products or services, as reported in the cash flow statement.

Dividends Paid

The total amount of dividends that a company distributes to its shareholders during a specific period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Cash Outflow

The movement of money out of a business, typically as expenses or investments, resulting in a decrease in the company’s cash and cash equivalents.