A CCA Recapture or Terminal Loss Can Arise When

question 34

Multiple Choice

A CCA recapture or terminal loss can arise when
I.the CCA asset class is terminated
II.assets are sold for less than UCC of asset class
III.assets are sold for more than UCC of asset class

• A)I only
• B)I, II, and III
• C)II or III only
• D)I or III only

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Definitions:

Cash Flow

Cash Flow is the total amount of money being transferred into and out of a business, especially as affecting liquidity. It is often considered in terms of net cash flow, which is income minus expenses.

Project

A temporary endeavor designed to produce a unique product, service, or result with specific objectives.

WACC

The Weighted Average Cost of Capital is determined by calculating a firm's capital cost, with proportional weights assigned to each category of capital.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by discounting future cash flows to their present value.