1. If the lease payment for the machine in Question above were made in advance, starting at the beginning of the first year of the contract, what would the size of such a payment now be as an equivalent annual cost?
A. $71,455
B. $14,644
C. $15,533
D. $15,816
2. What is the undepreciated capital cost of $800,000 asset after five CCA calculations of 30% declining balance, with the half-year rule?
A. $0
B. $240,000
C. $163,268
D. $145,564
3. If a machine costs $50,000, and $5,000 a year for the less or to maintain and insure, what equivalent annual cost would serve as the basis of a full-service lease payment for a six-year operating lease, paid in arrears, if the lessor's cost of capital is 8%?
A. $15,816
B. $73,114
C. $17,155
D. $55,000