Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000. If the firm borrows and buys the truck, the loan rate would be 10%, and the loan would be amortized over the truck’s 4-year life, so the interest expense for taxes would decline over time. The loan payments would be made at the end of each year. The truck will be used for 4 years. If DTC buys the truck, it would purchase a maintenance contract that costs $1,000 per year, payable at the end of each year. DTC's tax rate is 40. What is the CASH FLOW at the end of Year 2? (Note: MACRS depreciation rates for Years 1 to 4 are 0.33, 0.45, 0.15, and 0.07.) a. -$4,764 b. -$6,019 c. -$6,339 d. -$9,943 e. -$5,640

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500