Following the Time Sequence Described in Table 17

question 42

Multiple Choice

Following the time sequence described in Table 17.1,,what would the present value of cash flows be for leasing this $800,000 asset if the lessee's before tax cost of capital were 15% and the lease payments of the assets were $210,000? The tax rate is 40% and CCA = 30%.Note that the asset is scrapped and alone in its pool at the time of disposition.The assest is scrapped in 4 years.

• A) ($24,555)
• B) $3,456
• C) $2,457
• D) $1,708

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Definitions:

STP (Shielded Twisted Pair)

Network cable with extra foil to prevent outside noise from interfering with data on the cable.

Loopback Plug

A device used to test the ports of a computer by plugging it into a port and sending signals through it, verifying the operation and responsiveness of the port by looping the signal back to the source.

NIC (Network Interface Card)

A port on a device that allows connectivity to a network. A NIC can connect to a wired or wireless network.

Cable Tester

A tester that checks coaxial and UTP cable ends (depending on the model) to determine if cable terminals are suitable for use.