Depreciation expense produces a cash inflow equal to the depreciation expense multiplied by the
firm's marginal tax rate.
Indicate whether the statement is true or false
TRUE
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Which of the following is a need-based perspective on motivation?
A. Expectancy theory B. Herzberg's two-factor theory C. Job characteristics model D. Goal-setting theory E. Equity theory
McDonald Industries is considering the purchase of a $180,000 machine that is expected to result in a decrease of $20,000 per year in cash expenses. This machine, which has no residual value, has an estimated useful life of 15 years and will be depreciated on a straight-line basis. For this machine, the accounting rate of return would be
a. 4.4 percent b. 8.9 percent c. 11.1 percent d. 22.2 percent
Which of the following is not true about goodwill?
a. Goodwill reflects the value of knowledgeable employees. b. Goodwill reflects the value of a reputation for quality products. c. Under IFRS, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill. d. Firms must test goodwill annually for a loss in value. e. Under U.S. GAAP, goodwill has an indefinite life, and firms amortize the amount recognized as goodwill.
Which of these is NOT an element of project scope management?
A) Project champion B) Scope statement C) Project closeout D) Control systems