Question
What is the correct formula when calculating the net present value of an investment? a. After tax cash revenues - after tax cash expenses +
What is the correct formula when calculating the net present value of an investment?
a. After tax cash revenues - after tax cash expenses + depreciation tax savings * PV factor = net present value of cash flow.
b. After tax cash revenues - after tax cash expenses - depreciation tax savings * PV factor = net present value of cash flow.
c. After tax cash revenues + after tax cash expenses - depreciation tax savings * PV factor = net present value of cash flow.
d. After tax cash revenues + after tax cash expenses + depreciation tax savings * PV factor = net present value of cash flow.
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
17th Edition
1119613698, 978-1119613695
