Describe Three External Costs That Might Be Related to Qantas

question 62

Essay

Describe three external costs that might be related to Qantas.Please explain your rationale:

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Definitions:

Lessor

The party in a lease agreement who owns the property and grants another party, the lessee, the right to use it for a specific period in exchange for payment.

Lessee

A lessee is an individual or entity that leases an asset or property from another party, known as the lessor.

PV Of CCA Tax Shield

The present value of capital cost allowance tax shield, which represents the discounted value of tax savings due to depreciation expenses.

PV Of After-Tax Lease Payments

The present value of after-tax lease payments is the current worth of all lease payments to be made over the lease term, adjusted for taxes.