Quiz Ch 09 – Depreciation and Taxation
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which statement about depreciation is accurate?
Which statement about depreciation is accurate?
What is the appropriate approach for calculating cash flow from operations?
What is the impact on NPV when a project necessitates an additional commitment of $100,000 in net working capital in each of years 1 to 4, with the ability to recover these investments in year 5 when the project concludes?
What method is more likely to improve the perception of an unacceptable project to make it appear acceptable?
What is the usual consequence of opting for straight-line depreciation rather than bonus depreciation in a company’s financial records?
What happens when a project that involves a $20,000 investment in net working capital ends?
What modification would raise the NPV of a project when a positive discount rate is applied?
What is the primary rationale for excluding sunk costs from capital budgeting decisions?
Which is least likely to influence the decision to pursue an investment?
Which option among the following will result in a decrease in the net present value of a project?