The Box Store Is Considering the Purchase of a Delivery

question 53

Multiple Choice

The Box Store is considering the purchase of a delivery truck costing $49,000. The truck can be leased for three years at $19,500 per year or it can be purchased at an interest rate of 7.5 percent. The estimated life of the truck is three years. The corporate tax rate is 21 percent. The company does not expect to owe any taxes for the next several years due to large operating losses. The firm uses straight-line depreciation. What is the net advantage to leasing?

• A) -$1,710
• B) -$864
• C) $1,304
• D) −$1,006
• E) $1,794

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Definitions:

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful thinking patterns, beliefs, and attitudes, aiming to alter emotional responses and behaviors accordingly.

Schema Focused Therapy

A form of therapy that combines elements of cognitive-behavioral, experiential, interpersonal, and psychoanalytic therapies to change deeply ingrained patterns of thinking and behavior.

Schema Focused Psychotherapy

A type of therapy that combines elements of cognitive-behavioral, experiential, interpersonal, and psychoanalytic therapies to change deep-rooted patterns or schemas.

Limited Reparenting

A therapeutic technique where the therapist provides the support and care missing from the client's developmental history, helping them to heal emotional wounds.