Following the Time Sequence Described in Table 17

question 39

Multiple Choice

Following the time sequence described in Table 17.1, what would the present value of cash flows be for leasing this $800,000 asset if the lessee's before tax cost of capital were 15% and the lease payments of the assets were $210,000? The tax rate is 40% and CCA = 30%.Note that the asset is scrapped and alone in its pool at the time of disposition.The asset is scrapped in 4 years.

• A)($24,555)
• B)$3,456
• C)$2,457
• D)$1,708

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Definitions:

Learned Helplessness

A belief that nothing one does matters, derived from an experience of random or unpredictable reward and punishment, and theorized to be a basis of depression.

Stimulus-Response Associations

The concept in psychology that behavior is a reaction to environmental stimuli, where specific stimuli elicit specific responses.

John Watson

An American psychologist, regarded as one of the founders of behaviorism, emphasizing the importance of observable behavior over internal phenomena like thoughts and feelings.

Learned Helplessness

A psychological condition in which individuals believe they have no control over their environment, leading to a lack of motivation and depression.