Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer the flowing True False (T/F): 1- In sensitivity graph, if the slope of the line that represents changes in variable X is smaller than
Answer the flowing True False (T/F): 1- In sensitivity graph, if the slope of the line that represents changes in variable X is smaller than the slope of the line that represent changes in variable Y and both of the slopes are negative, then the project is more sensitive to variable X compared to Variable Y. (T/F) 2- If an asset has no definite service life, the asset cannot be depreciated. 3- A truck classified as 5-years MACRS property was purchased on January 1 of 2010, then was sold on October 1 of 2010, a half year depreciation should be considered. (T/F) 4- A residential holding was purchased on January 1 of 2019 if MACRS depreciation system is applied, then in order to calculate the book value of the property on January 1 of 2029, 8.5 years of the depreciation should be considered. (T/F) 5- Increasing the magnitude of the initial investment result to decrease the optimum replacement interval. (T/F) 6- In replacement analysis, the cash flow approach meaningful on if the defender and challenger have the same service life. (T/F) 7- In opportunity cost approach, the proceeds from sold the old machine is treated as down payment toward purchasing new machine. (T/F) 8- Cash flow approach treat the amount of money received from the sale of old machine as the investment required keeping the old machine. This type of approach is more commonly practiced in replacement analysis. (T/F) 9- The marginal tax rate is the rate applied to the last dollar of income. (T/F)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started