Use the Information Below to Answer the Following Question(s)

question 159

Multiple Choice

Use the information below to answer the following question(s) .Albernie Ltd.purchased a CCA Class 8 (CCA rate of 20%) item of equipment for $90,000.The equipment was the only item in the Class 8 capital cost allowance pool.The equipment is expected to generate savings in the amount of $40,000 per year.The company uses straight-line depreciation, estimates a 3 year useful life with $20,000 salvage value for the new equipment.The tax rate is 35%, and Albernie has a required rate of return of 9.0%.
-What is present value of the salvage value that Albernie Ltd.is expecting from the equipment?

• A)$ 15,897
• B)$ 20,000
• C)$ 15,444
• D)$ 11,574
• E)$ 14,169

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Definitions:

General Adaptation Syndrome

A theoretical framework describing the body's short- and long-term reactions to stress, proposed by Hans Selye.

Stress

The physical and emotional response to perceived threats or challenges, resulting in a physiological reaction that prepares the body to fight or flee.

Functions of the Brain

The diverse processes and operations carried out by the brain, including thought, emotion, motion, and regulation of bodily functions.

Sensory Pathway

Nerves coming from the sensory organs to the CNS consisting of afferent neurons.