Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because:?
A. ?it represents a tax-deductible cash expense.
B. ?the firm has a cash outflow equal to the depreciation expense each year.
C. ?depreciation has an impact on the taxes paid by the firm, which is a cash flow.
D. ?depreciation is a sunk cost.
E. ?depreciation is a cash flow that doesn't change.
Answer: C
You might also like to view...
All of the following facts pertain to China except:
A) China is in the upper-middle-income category. B) China is the largest single destination for foreign investment in the developing world. C) China is a member of the World Trade Organization. D) China has sprawling bureaucracy. E) China has intellectual property rights.
Which of the following is an example of a pricing strategy that focuses on customers' needs?
A) price leadership B) everyday low pricing C) distribution-based pricing D) cost-plus pricing E) skimming
Discuss and exemplify how you can signal to your audience that the speech is coming to a close.
What will be an ideal response?
Describe the distinction between eHRM and HRIS.
What will be an ideal response?