11. Which of the following islare NOT correct? A. If the salvage value is the same as the book value of the asset, then there is no tax effect. B. Book value = initial cost-accumulated depreciation c. After-tax salvage = salvage + Tax Rate x (salvage - book value) D. Both A and C 12. Which of the following is correct about Bottom- Up Approach? A. Operating Cash Flow = Net Income + Depreciation B. Operating Cash Flow = Sales - Costs - Taxes C. Operating Cash Flow = (Sales - Costs) x (1 - T) + Depreciation XT D. None of the above 13. The return earned on assets depends on the of those assets. A. Book value B. Net book value C. Risk Liquidity D. the required return to for the financing they 14. We need to earn compensate the investors have provided. Above Below C. At least D. None of the above A. 15. The required return of bond is best estimated by computing the on the bond. Yield-to-maturity market value Risk Both A and B C. 16. are tax deductible, so there is tax impact on the cost of equity. Interest expenses Director's remuneration Dividends D. All of the above 17. finds one or more companies that specialize in the product or service that we are considering. The Objective Approach The Pure Play Approach The Subjective Approach D. None of the above C. 18. The considers the project's risk relative to the firm overall risk. A. The Objective Approach The Pure Pay Approach The Subjective Approach The Bottom-Up Approach 19. Whenever there is a conflict between NPV and another decision rule, you should always not to use NPV. True False B. 20. A profitability index of 1.1 implies that for every of investment, we create an additional in value. $100, $10 $110, $10 $1, $ 0.1 Both A and C