Depreciation is based on the asset cost

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Reference no: EM1335350

Q1) The net cash flows for any year during the life of capital expenditure project are equal to the change in ____ plus the change in ____.

a. earnings before interest and taxes; depreciation
b. earnings before taxes; depreciation
c. earnings after taxes; depreciation
d. revenues; costs

Q2) Depreciation is based on the asset cost plus all of the following except:

a. shipping costs
b. increase in inventory
c. installation
d. cost of attached equipment acquired at the same time

Reference no: EM1335350

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