chap10_student - Tutorial for Chapter 10 Financial...

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Tutorial for Chapter 10 Financial management (BUSS207) 1. The changes in a firm's future cash flows that are a direct consequence of accepting a project are called _____ cash flows. a. incremental b. stand-alone c. after-tax d. net present value e. erosion 2. Erosion is best described as: 3. Wiley Electric just purchased some MACRS 5-year property at a cost of $118,000. Which one of the following will correctly give you the book value of this equipment at the end of year 3? a. $118,000 / (1 + .20 + .32 + .192) b. $118,000 (1 .20 .32 .192) c. $118,000 (.20 + .32 + .192) d. {[$118,000 (1 .20)] (1 .32)} (1 .192) e. $118,000 /{[(1.20 / 1.32)] / 1.192}
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Tutorial for Chapter 10 Financial management (BUSS207) 4. Increasing which one of the following will increase the operating cash flow?
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