For each statement in Parts a through d, give a short answer or indicate True or False.

Question:

For each statement in Parts a through

d, give a short answer or indicate True or False.

a. Which of the following is a cash flow: (1) depreciation, (2) loan interest paid, and/or (3) income tax?

b. We know that depreciation law has changed dramatically since 1950; however, tax law has not changed.

(T or F)

c. Depreciation method affects taxes owed. (T or F)

d. In an alternative evaluation, the inclusion of taxes will change the amount of the measures of merit (e.g., PW or AW) but will not change which alternative is selected as most desirable. (T or F)

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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