Use the Table for the Question(s)below

question 27

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 NPV of leasing versus borrowing?

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

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Definitions:

Supply And Demand Diagram

A graphical representation of the relationship between the quantities of a good that sellers are willing to sell and buyers are willing to buy, at various prices.

Negative Externality

A negative externality occurs when a product or decision costs a third party who did not choose to incur that cost.

Wooden Sculpture

A piece of art or decorative object carved from wood.

Safety Hazard

A condition in the workplace or environment that has the potential to cause harm or injury to people.