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1) For a profitable company, an increase in the rate of depreciation on a specific project could 2

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1) For a profitable company, an increase in the rate of depreciation on a specific project could

2. Which of the following capital expenditure planning and control techniques has been criticized because it might mistakenly imply that earnings are reinvested at the rate of return earned by the investment? 

3. If the discount rate that is used to evaluate a project is equal to the project’s internal rate of return, the project’s _____________ is zero.

4. As the marginal tax rate goes up, the benefit from the depreciation tax shield

5. When a profitable corporation sells an asset at a loss, the after-tax cash flow on the sale will?

6. In a typical (conservative assumptions) after-tax discounted cash flow analysis, depreciation expense is assumed to accrue at 

7. The pre-tax and after-tax cash flows would be the same for all of the following items except

8. The after-tax net present value of a project is affected by

9. A project’s after-tax net present value is increased by all of the following except

10. Multiplying the depreciation deduction by the tax rate yields a measure of the  depreciation tax

11. Annual after-tax corporate net income can be converted to annual after-tax cash flow by

12. Income taxes are levied on

13. Which of the following best represents a screening decision?

14. Below are pairs of projects. Which pair best represents independent projects?

15. Which of the following are tax deductible under U.S. tax law?

16. Sensitivity analysis is ?

17. If management judges one project in a mutually inclusive set to be acceptable for  investment,

18. All other factors equal, which of the following would affect a project’s internal rate of  return, net present value, and payback period?