Question
The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5-year depreciation. Her accountant reviews
The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5-year depreciation. Her accountant reviews the analysis and changes the depreciation method to 3-year depreciation. This change will
A. increase the present value of the NCFs.
B. decrease the present value of the NCFs.
C. have no effect on the NCFs because depreciation is a non-cash expense.
D. only change the NCFs if the useful life of the depreciable asset is greater than 5 years.
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Gapenskis Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
