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1.-How does an increase in depreciation expense affect FCF(free cash flow) when a tax rate is 30%? Increases FCF Decreases FCF No impact on FCF
1.-How does an increase in depreciation expense affect FCF(free cash flow) when a tax rate is 30%?
Increases FCF
Decreases FCF
No impact on FCF
2.- All else equal, How does a depreciation schedule (eg. a 6-year schedule to a 4-year schedule) affect NPV when a tax rate is 30%?
Increases NPV
Decreases NPV
No impact on NPV
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