A Canadian Tech Company Planning on Building a Call Center

question 66

Essay

A Canadian tech company planning on building a call center got a quote from an Indian company for Rs. 5.5 million with an exchange rate of 1 CAD to 51.9600 INR (Indian rupees). The tech company also got a quote from a Pakistani company for Rs. 8 million with an exchange rate of $1CAD to 81.0756 PKR (Pakistani rupees). Which quote is cheaper, in CAD?

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Definitions:

Ordinary Income

Income earned from providing services or the sale of goods, taxed at standard rates.

Liquidation

The process of closing a business by selling its assets to pay off remaining debts, possibly leading to a final distribution of cash to stakeholders.

Receivables

Receivables refer to the funds that a company is entitled to receive from customers for goods or services delivered or agreed upon.

§ 179 Expense

This refers to a U.S. tax code provision allowing businesses to deduct the full purchase price of qualifying equipment or software within the tax year, aimed at encouraging business investment and growth.