ACTSC372 Quiz: A1
11 Oct 2015
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Due monday october 5th at noon in drop box #13 outside mc 4066. Question 1: workbook question 2. 2 q3 (pill ltd. ) Question 2: consider to projects, a and b, both of which cost ,000. ,000 (nominal) per year for 10 years, and a pays ,500 (real) per year for 15 years. Assume real interest rates are 5% per year and assume inflation is expected to be. Question 3: construct the first 4 years of the cca schedule for an asset costing ,000. Assume the asset is in a cca class with a rate of 15%. Question 4: joe"s donut shop is considering purchasing a donut making machine for ,000. Assume the following. (cid:120) the machine will last 7 years, after which it will have a salvage value of ,000. It will be in a cca class with a rate of 20%. Assume assets will remain in the class. (cid:120) donuts sell for each.
