You purchased and put in use an asset with useful life of 5 years under MACRS depreciation system. For how many years will you record depreciation expense for this asset?

You purchased and put in use an asset with useful life of 5 years under MACRS depreciation system. For how many years will you record depreciation expense for this asset?

The [term1] [term2] of return is the estimated rate (i.e., percentage) that makes the discounted present value of future cash flows equal to the initial investment (2 words, 1 point for each word, up to 2 points).

Which of the following statements regarding capital investment analysis is FALSE?

The [term1] [term2] Simulation is an extension to scenario analysis in which a computer provides a distribution of possible outcomes, for example, project NPVs, based on repeated sampling from a distribution associated with one or more input variables in a decision model. (2 words, 1 point for each word, 2 points total)

The [term1] [term2] of return is the estimated rate (i.e., percentage) that makes the discounted present value of future cash flows equal to the initial investment (2 words, 1 point for each word, up to 2 points).

Which of the following statements regarding capital investment analysis is FALSE?

If the after-tax cost of debt is 10%, what is the approximate pre-tax cost for a firm in the 40% tax bracket?

A depreciation tax [term1] is a tax reduction technique under which depreciation expense is subtracted from taxable income. This amount is calculated as the applicable tax rate, multiplied by the amount of depreciation (1 point).

A depreciation tax [term1] is a tax reduction technique under which depreciation expense is subtracted from taxable income. This amount is calculated as the applicable tax rate, multiplied by the amount of depreciation (1 point).