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A new project requires the purchase of 2 assets ( A and B ). Asset A is depreciable with decreasing (declining) method and asset B

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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: NPV will decrease. NPV will increase. NPV will remain the same. It is impossible to answer the question with this information. Question 46 (1 point) The amount of depreciation constitutes: A relevant expense in the NPV. A relevant income in the NPV. A tax shield for the company. None of the answers is correct

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