Question
Please Help and answer all, => Installation costs are normally treated as part of the outlay for the project (cash outflow at t = 0),
Please Help and answer all,
=> Installation costs are normally treated as part of the outlay for the project (cash outflow at t = 0), but are capitalized for tax purposes (added to the value of the asset) and charged as depreciation over the life of the project.
True
False
=> When evaluating a project on an after tax basis using NPV any tax losses are ignored.
True
False
=> Using discounted payback. A conventional project that has a discount payback period less than its useful life cannot have a negative NPV.
True
False
=> Interest paid on debt (borrowing) is tax deductible. This creates a tax shield. For this reason the interest tax shield should be added when determing Net Cash Flows After Tax [NCFAT].
True
False
ol 1 2 NPV PVI IRR A-3000 2000 2000 471 1.16 22% B-6200 4000 4000 742 1.12 19% This is an example of the Time Disparity Problem. O True False
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