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32.Which of the following are correct methods for computing the operating cash flow of a project assuming that the interest expense is equal to zero? I.EBIT + Depreciation - Taxes II.EBIT + Depreciation + Taxes III.Net Income + Depreciation IV.(Sales - Costs) × (Taxes + Depreciation) × (1 - Taxes) A.I and III only B.II and IV only C.II and III only D.I, III, and IV only E.II, III, and IV only 33.The bottom-up approach to computing the operating cash flow applies only when: 34.The top-down approach to computing the operating cash flow: 35.An increase in which one of the following will increase the operating cash flow? 36.Tax shield refers to a reduction in taxes created by: A.a reduction in sales. B.an increase in interest expense. C.noncash expenses. D.
a project's incremental expenses.
37.A project which is designed to improve the manufacturing efficiency of a firm but will generate no additional sales is referred to as a(n) project. 38.Toni's Tools is comparing machines to determine which one to purchase. The machines sell for differing prices, have differing operating costs, differing machine lives, and will be replaced when worn out. These machines should be compared using: 39.The equivalent annual cost method is useful in determining: A the annual operating cost of a machine if the annual maintenance is performed versus when the . maintenance is not performed as recommended. B.the tax shield benefits of depreciation given the purchase of new assets for a project. C.operating cash flows for cost-cutting projects of equal duration. D.which one of two machines to acquire given equal machine lives but unequal machine costs. E which one of two machines to purchase when the machines are mutually exclusive, have different
. machine lives, and will be replaced once they are worn out.