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An asset has a purchase price of $90,000, CCA rate of 26%, maintenance is $750 at the end of each year, and expected salvage value is $0 at the end of its useful life in 5 years. The lessee pays no taxes, and the cost of debt is 15%. What is the maximum lease payment due at the beginning of each year acceptable to the lessee? Your Answer: Multiple Choice Question 16 (0.5 points) Which of the following statement about credit cost is NOT correct? The cost from required return on receivables increases as credit policy is relaxed The cost from losses from bad debts increases as credit policy is relaxed Firms that don't grant credit have no carrying cost of credit Credit carrying costs are negatively related to the amount of credit extended Opportunity costs of refusing credit go down if credit is granted An asset has a purchase price of $90,000, CCA rate of 26%, maintenance is $750 at the end of each year, and expected salvage value is $0 at the end of its useful life in 5 years. The lessee pays no taxes, and the cost of debt is 15%. What is the maximum lease payment due at the beginning of each year acceptable to the lessee? Your Answer: Multiple Choice Question 16 (0.5 points) Which of the following statement about credit cost is NOT correct? The cost from required return on receivables increases as credit policy is relaxed The cost from losses from bad debts increases as credit policy is relaxed Firms that don't grant credit have no carrying cost of credit Credit carrying costs are negatively related to the amount of credit extended Opportunity costs of refusing credit go down if credit is granted

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