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1 N Which of the following would not be claimed as capital budgeting decision? A) Leer bey decision 7) quipment replacement Expansion project D) Pricing

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1 N Which of the following would not be claimed as capital budgeting decision? A) Leer bey decision 7) quipment replacement Expansion project D) Pricing decision Why are the net present value and internal rate of retum methods of capital budgeting superior to the wyhad method A) Because they consider the time value of money B) Because they are easier to implement c) Because they require less input D) Because they reflect the effects of depreciation and income taxes If the net present value of a project is zero, based on a discount rate of 16%, which of the following statements about the projects internal rate of return is correct? A) Less than 169 B) More than 16% c) Equal to 16% D) Not enough information is provided TO 21 12 13 14 15 16 17 18 19 20 21 22 23 24 25 6 7 3 5 By what amount does a capital cost allowance (CCA) deduction reduce income taxes! A) The tax rate multiplied by the amount of the CCA deduction 7) One minus the tax rate multiplied by the amount of the CCA deduction JC) The amount of the CCA deduction D) None of the above Zing Co, has hired a consultant to assist in finalizing a recent merger with Zilo Co. The consulting fee is $275.000.11 Zing" 20% what is the after tax cost of the consulting fee? A) $55,000 B) $220,000 $330,000 D) $110,000 ALAR Zing Co. has hired a consultant to assist in finalizing a recent merger with Zilo Co. The consulting fee is $275.000. 1 Zing Co. tax rate is 20% what is the after tax cost of the consulting fee? A) $55,000 $220.000 $330.000 $110,000 B)

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