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Your Company Needs Some Research Equipment Which Belongs to Class

Question 155

Multiple Choice

Your company needs some research equipment which belongs to Class 10 (CCA Rate 30%) . The cost of the equipment is $850,000. You can borrow at 12% and the tax rate is 34%. You can lease
The equipment for $270,000 a year for four years. It has no salvage value. What is the net
Advantage to leasing?


A) -$204,446
B) -$132,000
C) -$8,352
D) $9,336
E) $38,477

Correct Answer:

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