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
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
