Methods of depreciation would be preferable

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Reference no: EM131910784

1. A project should be accepted if _____.

its payback period is more than the expected number of years to recover the original investment

its internal rate of return (IRR) exceeds the required rate of return

it involves multiple cash inflows and cash outflows during the life of the project

its undiscounted cash flows are more than the discounted cash flows

it yields multiple internal rates of return

2. A profitable company making earth-moving equipment is considering an investment of $100,000 on equipment, which will have a 5-year useful life and, no salvage value. If money is worth 10%, which one of the following three methods of depreciation would be preferable?

a. Straight - line method

b. SOYD method

c. MACRS method

Reference no: EM131910784

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