Use the Table for the Question(s)below

question 4

Multiple Choice

Use the table for the question(s) below.
Danby Construction is considering leasing a new crane for the next 5 years.Danby has created the following table of cash flows to help with the decision:

-If Danby's borrowing cost is 7%,and its tax rate is 35%,what is the amount of the lease-equivalent loan for the crane?

• A)$96,747
• B)$369,671
• C)$348,253
• D)-$363,441
• E)$75,329

---

Definitions:

State's Highest Court

The supreme judicial authority within a state, responsible for interpreting state laws and constitutions.

Diversity of Citizenship

A legal concept under civil procedure that allows a federal court to hear a lawsuit if the parties involved are from different U.S. states or a foreign country.

Federal Court

A court established by the national government that has jurisdiction over disputes involving federal laws, constitutional issues, or disputes between states or between a state and the federal government.

Exercise Jurisdiction

The act of applying or enforcing legal authority over a geographical area or group of people.