Question
At what amount should the capital cost allowance (CCA) tax shield be included in the calculation of the net present value of an investment project?
At what amount should the capital cost allowance (CCA) tax shield be included in the calculation of the net present value of an investment project?
Multiple Choice
a. The amount of the CCA with no adjustment for taxes.
b. The amount of the CCA multiplied by one minus the tax rate.
c. The amount of the CCA multiplied by the tax rate.
d. Zero, since the amount of CCA is not relevant to the calculation of net present value.
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Information Systems Control And Audit
Authors: Et Al. Hyo-Jeong Kim, Michael Mannino, Compiled By Koros Press Editorial Board
1st Edition
