Which One of the Following Is Not a Cash Flow

question 5

Multiple Choice

Which one of the following is not a cash flow item in financial lease analysis?

• A)the lessor's repayment schedule for financing the asset.
• B)the value of the salvage to the lessor.
• C)the CCA tax shelters of the lessor.
• D)the lease payment's tax shelter impacts for the lessee.

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Definitions:

Efficient

An economic condition where resources are allocated in the most optimal way, maximizing the production of goods and services without wasting any resources.

Production Possibilities Frontier

A graph that illustrates the maximum amounts of two goods that a society can produce with the available resources and technology, given that it is using its resources efficiently.

Representativeness Bias

A cognitive bias where individuals incorrectly assess the probability of an event based on similarities to existing prototypes in their mind, rather than on actual evidence.

Availability Bias

A cognitive bias where individuals overestimate the importance of information that is readily available to them.