1. A company which uses the MACRS system of depreciation:

A.will have equal depreciation costs each year of an asset's life.

B.will expense the largest percentage of the cost during an assets first year of life.

C.will write off the entire cost of an asset over the asset's class life.

D.cannot expense any of the cost of a new asset during the first year of the asset's life.

E.can depreciate the cost of land, if it so desires.

2.The internal rate of return is:

A.dependent on the interest rates offered in the marketplace.

B.a better methodology than net present value when dealing with unconventional cash flows.

C.equivalent to the discount rate that makes the net present value equal to one.

D.more reliable as a decision making tool than net present value whenever you are considering mutually exclusive projects.

E.computed using a projects cash flows as the only source of inputs.