Difference between the capital cost allowance

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Your friend Anthony Jones just got a job at Tesla and is in a meeting with Elon Musk. Tesla is forecasting exponential growth on its car sales, and Elon Musk wants to have a better understanding of growth rates. Elon Musk asks Anthony Jones to explain the assumptions that underlie the sustainable growth rate and interpret what the sustainable growth rate means for the company.

(ii) Your friend Anthony Jones applied for a mortgage. Anthony Jones wants you to explain to him the relationship between the monthly payments he must make and the amortization period. Anthony Jones prefers to invest his money in the stock markets as opposed paying down his mortgage. He asks you for advice on whether he should increase his monthly mortgage payments. Based on what you have learned in Managerial Finance, provide Anthony Jones with your advice.

(iii) Your friend Anthony Jones has just opened a small business. Anthony Jones is unsure about the difference between the Capital Cost Allowance and the Depreciation rate, and how this impact his taxes. Anthony Jones asks for your help to explain this.

Reference no: EM133000370

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