2. Cash flows (S6.1) True or false? a. Project cash flows should take account of interest paid...

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2. Cash flows (S6.1) True or false?

a. Project cash flows should take account of interest paid on any borrowing undertaken to finance the project.

b. Accelerated depreciation reduces near-term project cash flows and therefore reduces project NPV.

c. The depreciation tax shields of a project depend on the rate of inflation.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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