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28. The salvage value of an asset creates an after-tax cash inflow to the firm in an amount equal to the: Difficulty level: EasyTopic: SALVAGE VALUEType: CONCEPTS29. The pre-tax salvage value of an asset is equal to the: Difficulty level: EasyTopic: SALVAGE VALUEType: CONCEPTS30. A project's operating cash flow will increase when: Difficulty level: EasyTopic: PROJECT OCFType: CONCEPTS6-41
Chapter 06 - Making Capital Investment Decisions31. The cash flows of a project should: Difficulty level: EasyTopic: PROJECT CASH FLOWSType: CONCEPTS32. 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 - TaxesII. EBIT + Depreciation + TaxesIII. Net Income + DepreciationIV. (Sales - Costs) ×(Taxes + Depreciation) ×(1 - Taxes) Difficulty level: MediumTopic: PROJECT OCFType: CONCEPTS33. The bottom-up approach to computing the operating cash flow applies only when: Difficulty level: MediumTopic: BOTTOM-UP OCFType: CONCEPTS6-42