41 While the range of the covan e range of the covariance measure is between plus and minus infinity (i.every large Positive to very large negative numbers), the correlation coefficient varies only bomwa a. -1 and o b. 0 and +1 c. -1and +1 d. 0 and 10 e. None of the above pitalizing the cost and depreciating it - Regarding expensing an asset's cost immediately versus capitalizing the cost and depe over time: All else the same, given a choice, a tax paying firm would generally P paying firm would generally prefer to a. Capitalize the cost and depreciate, because this will make the current years he his will make the current year's net income higher. b. capitalize the cost and depreciate, because it is best to extend the depreciati future as much as possible. cause it is best to extend the depreciation tax shield into the G. expense the asset to capture the tax shield immediately and thereby maximize the presom value of the tax shield. d. expense the asset to maximize the current year's net income. e. none of the above. 43 If a tax paying firm pays $100.000 in interest what is the after tax interest cost for firm assuming they are in a 40% tax bracket? a. 100,00 since interest is paid after taxes are paid and thus there is no tax shield b. 40,000 since there is a tax shield on interest C. 60,000 since there is a tax shield on interest d. insufficient information to compute 44 A capital budgeting decision tool, such as NPV, IRR, etc. should consider (use) a. all of the relevant cash flows b. only some of the relevant cash flows c. only the opportunity costs d. only the operating cash flows I louloto an IRR