When a company is analyzing a capital project by a discounted-cash-flow approach and income taxes are being considered, depreciation:
A. should be considered because, like other expenses, it is a cash outlay related to operations.
B. should be ignored.
C. should be considered because it results in a tax savings.
D. should be considered because it is a cash inflow.
E. should be considered because it is a fixed cost.
Answer: C
You might also like to view...
What is most likely a strategic benefit of the existence of competitors?
A) Competitors seldom lead to product differentiation. B) Competitors help legitimize new technologies. C) Competitors exclusively serve more-attractive segments. D) Competitors fracture the target market. E) Competitors decrease the total demand.
Explain the purpose of a subject line in an email message, and provide guidelines for writing an effective subject line
If an instrument is payable to multiple persons using the word "and," then the instrument ________
A) cannot be negotiated any further B) cannot be negotiated by either party individually C) can only be further negotiated jointly D) can only be further negotiated with the signature of the drawer
Which of the following statements concerning defined contribution pension plans is (are) true? I. The contribution rate is fixed. II. The retirement benefit varies
A) I only B) II only C) both I and II D) neither I nor II