Q1.The benefit from a loss on the sale of an asset is the amount by which taxes are reduced. the reduction in taxable income is reffered to as a ...................

1.tax shield

2.Tax basis

3.Tax purposes

Q2/where the investment in one enhances the cash flows of one or more other projects.

		complementary projects
		independant rojects
		contingent projects
		mutually exclusive projects

Q3.

If the firm buy equipment cost $120,000 and installed cost $2,000 and the cash flow from aquiring is $115,290. what is the tax credit on this equipment?

		5.5%
		10%
		5%
		15%

Q5.

Inceremental cash flows is The cash flows of the firm with the investmentv project and the cash flows of the firm without the investment

True

False