Use the Table for the Question(s)below

question 103

Multiple Choice

Use the table for the question(s) below.

-Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.The cars belong to asset class 10 and have a capital cost allowance (CCA) rate of 30%.The cars will be sold at the end of 3 years for $150,000.What is the present value of the lost CCA tax shields of the project,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%?

• A)$8342
• B)$21,131
• C)$10,112
• D)$25,912
• E)$28,125

---

Definitions:

Louis Napoleon

Louis Napoleon, also known as Napoleon III, was the first President of France and later the Emperor of the French, ruling from 1848 to 1870, known for his significant modernization of the French economy and urban development.

Popular Support

The backing or endorsement of the general populace for a policy, idea, or leader, often essential for the legitimacy and effectiveness of governance or initiatives.

Second Republic

A term that can refer to several historical periods where a country reinstated a republican form of government after a period of non-republican rule, each marked by a quest for democracy, liberty, and often significant social reform.

Montagnards

A political group during the French Revolution, seated on the highest benches of the assembly, known for their radical views and support for extreme measures including the reign of terror.