Problem 1 Chapters 1 through 4 (10 Points each)

A. True or False For a particular project, Straight Line depreciation will generally result in slower (less beneficial) depreciation recovery than would be the case if Double Declining Balance depreciation were used.

B. True or False In economic analysis we want to maximize the difference: (Benefits - Costs).

C. True or False The Nominal interest rate is always greater than the Effective interest rate.

D. True or False Cost Analysis is based on the time value of money. This means a dollar today is worth more than a dollar a year from now.

E. True or False It is legal and ethical to use one method of depreciation for taxes and another on the companys financial statements.

F. True or False The Bonus Depreciation method is set to 100% for the 2022 tax year