Use the Table for the Question(s)below

question 19

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%.What is the net present value (NPV) of the project,given that the cost of capital is 10%,and the company faces a marginal tax rate of 25%?

• A)$66,373
• B)$78,564
• C)$118,580
• D)$151,142
• E)$167,549

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Definitions:

Symbolic Interactionism

This is a sociological perspective focusing on the ways in which people interpret, define, and assign meaning to objects, events, and behaviors within context, influencing social interactions and society.

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Mesosystem

In ecological systems theory, the mesosystem refers to the interconnections between the microsystems in a person's life, such as family and school.

Microsystem

A layer of the ecological systems theory focusing on the immediate environment an individual interacts with, such as family and school.