Chp 10 Finance Quiz 3

Chp 10 Finance Quiz 3 - Question 1 1. Which one of the...

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Question 1 1. Which one of the following is a correct method for computing the operating cash flow of a project assuming that the interest expense is equal to zero? Answer EBIT + D EBIT − T NI + D (Sales - Costs) × (1 - D) × (1- T) (Sales - Costs) × (1 - T) 0.1 points Question 2 1. Which one of the following is the depreciation method which allows accelerated write- offs of property under various lifetime classifications? Answer IRR ACRS AAR straight-line to zero straight-line with salvage 0.1 points Question 3 1. The top-down approach to computing the operating cash flow: Answer ignores noncash expenses. applies only if a project increases sales. applies only to cost cutting projects. is equal to sales - costs - taxes + depreciation. is used solely to compute a bid price. 0.1 points Question 4 1. Northern Railway is considering a project which will produce annual sales of $975,000 and increase cash expenses by $859,000. If the project is implemented, taxes will
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Chp 10 Finance Quiz 3 - Question 1 1. Which one of the...

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