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2easy M.C. questions, show working and I will rate highly thankyou <3 ! Question 1) Which of the following statements is correct? a) depreciation is

2easy M.C. questions, show working and I will rate highly thankyou <3 !

Question 1)

Which of the following statements is correct?

a) depreciation is not tax deductible.

b) Sales projections are not important in projecting future cash flows.

c) None of the other answers is correct.

d) The discounted cash flow model is completely different from the NPV.

e) In the free cash flow to the firm, interest expenses are ignored.

Question 2)

Which of the following statements is correct?

a) None of the other answers is correct.

b) Change in cash should be included as part of change in working capital when calculating free cash flows.

c) Working capital is equal to all current assets minus all current liabilities.

d) Straight line depreciation allows you to reduce taxes earlier relative to accelerated depreciation.

e) Days sales outstanding indicates how well a company collects its accounts receivables.

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