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CIMAPRA19-F03-1 Exam - Topic 2 Question 37 Discussion

A company is undertaking a lease-or-buy evaluation, using the post-tax cost of bank borrowing as the discount rate.Details of the twoalternatives are as follows:Buy option:* To be financed by a bank loan* Tax depreciation allowances areavailable on a reducing-balance basis* Assets depreciated on a straight-line basisLease option:* Finance lease* Maintenance to be paid by the lessee* Tax relief available on interest payments and book depreciationWhich THREE of the followingare relevantcashflows in the lease-or-buy appraisal?
A) Tax relief on tax depreciation allowances and D) Lease payments and E) Tax relief on the book depreciation
B) Bank loan payments
C) Maintenance payments

CIMAPRA19-F03-1 Exam - Topic 2 Question 37 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 37
Topic #: 2
[All CIMAPRA19-F03-1 Questions]

A company is undertaking a lease-or-buy evaluation, using the post-tax cost of bank borrowing as the discount rate.

Details of the twoalternatives are as follows:

Buy option:

* To be financed by a bank loan

* Tax depreciation allowances areavailable on a reducing-balance basis

* Assets depreciated on a straight-line basis

Lease option:

* Finance lease

* Maintenance to be paid by the lessee

* Tax relief available on interest payments and book depreciation

Which THREE of the followingare relevantcashflows in the lease-or-buy appraisal?

Show Suggested Answer Hide Answer
Suggested Answer: A, D, E

by Elza at May 09, 2022, 03:28 PM

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Andrew
9 months ago
Wait, are we really considering tax relief on depreciation? That seems off.
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Olive
9 months ago
Bank loan payments are definitely a factor here!
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Glory
9 months ago
Not sure about tax relief on book depreciation being relevant.
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Boris
9 months ago
I think maintenance payments should count too.
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Daren
9 months ago
Definitely the lease payments are relevant cash flows.
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Heike
10 months ago
Hmm, I'm a bit confused by the different design standards and delivery approaches mentioned. I'll have to re-read the question to make sure I understand it fully.
upvoted 0 times
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Aliza
10 months ago
I'm confident the answer is C. LFT's. Divalproex Sodium is known to cause liver toxicity, so regularly checking liver function tests is crucial when prescribing this medication.
upvoted 0 times
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Slyvia
10 months ago
Ah, I see what's going on now. The solution of just changing user settings on the MFA page isn't sufficient - I need to create a proper conditional access policy to enforce the MFA and device requirements. I'm feeling more confident about this.
upvoted 0 times
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Margarett
10 months ago
I'm pretty confident I know the answer to this one. Linux passwords can be encrypted using MD5, SHA, DES, and Blowfish algorithms.
upvoted 0 times
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