13. Among following items in the initial investment, which one (s) is (are) depreciable?

1. Purchase of a land.
2. Purchase of heavy equipment.
3. Purchase of new furniture.
4. Lay off premiums.
5. Major repairs in the middle of project.
6. Additional investment to increase the client accounts.

1. 2, 3 and 5 only.
2. 1, 2 and 4 only.
3. 1, 5 and 6 only.
4. 2, 3 and 6 only.
5. 3, 4 and 5 only.

14. A new project requires the purchase of 2 assets (A and B). Asset A is depreciable with decreasing (declining) method and asset B is depreciable with linear method. Suppose the tax law concerning asset B changes and both assets have to be depreciated with declining method. Following this change:

1. NPV will decrease.
2. NPV will increase.
3. NPV will remain the same.
4. It is impossible to answer the question with this information.