True regarding depreciation

Assignment Help Financial Management
Reference no: EM131517296

The following statement is true regarding depreciation:

Accelerated depreciation will increase the NPV

Accelerated depreciation will increase the Payback

Accelerated depreciation will decrease IRR

Accelerated depreciation will decrease NPV

Accelerated depreciation changes the total amount of depreciation taken over the life of the asset

Reference no: EM131517296

Questions Cloud

Calculate balance of the performance bond account : Calculate your daily losses/ profits from daily marking-to-market. Calculate balance of the performance bond account after the third day.
Regarding three investment opportunities : Project 1 has a project beta of 2.0 and you have estimated that the project’s NPV using a cost of capital of 20% equals zero.
Compute the volatility of a portfolio : Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is ?
What is the npv of this investment : You have an opportunity to invest $107,000 now in return for $79,000 in one year and $30,000 in two years. what is the NPV of this investment?
True regarding depreciation : The following statement is true regarding depreciation:
Calculate the value of a six-month european call option : Calculate the value of a six-month European call option on the stock with an exercise price of $48.
The advantage of the regular payback technique : The advantage of the regular payback technique as a capital budgeting tool is:
Offered unique investment opportunity : You have been offered a unique investment opportunity. Should you take the? opportunity?
Brunswick distribution-case requires a quantitative solution : Brunswick Distribution - This case requires a quantitative solution. To answer it properly you must calculate NPV, ROA, IRR, and payback period for each option

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the futures price of the index

A British investor holds a portfolio of British stocks. The market value of the portfolio is £20million, with a ? of 1.5 relative to the FTSE index. In November, the spot value of the FTSE index is 4,000. The dividend yield and pound interest rates a..

  Security deposit at the inception of the lease

The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $1.9 million in annu..

  MACRS accelerated method to depreciate the machine

Montilus Products Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $15,000 annually. Montilus will use the MACRS accelerated method to depreciate the machine (5-year MACRS class life),

  What was the annual increase in selling price

Assume the in January 2013, the average house price in a particular area was $279,400. In January 2002, the average price was $196,300. What was the annual increase in selling price?

  When a firm issues securities to the public

When a firm issues securities to the public for the very first time, these are generally under-priced. Explain why.

  Take the firm to sell its inventory assuming

Al's Sport Store has sales of $2,910, costs of goods sold of $2,130, inventory of $527, and accounts receivable of $449. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

  Bond with the present value of the future cash flows

A bond selling to yield 10 percent after flotation? costs, but before adjusting for the marginal corporate tax rate o 32percent. In other? words,10 percent is the rate that equates the net proceeds from the bond with the present value of the future c..

  The firms total-debt-to-total-assets ratio

In 2012 Whole Foods had sales of $74 billion and a net income of $17 billion, and its year-end total assets were $121.31 billion. The firm's total-debt-to-total-assets ratio was 45.3%. Based on the DuPont equation, what was the Microsoft ROE in 2012?..

  What is the value of this stock at the beginning

Waller Co. (WAG) paid a $0.157 dividend per share in 2006, which grew to $0.346 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 15.7 percent?

  Find the correlation between the two stocks

Find the correlation between the two stocks

  Required rate of return-net present value

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,322, $863,275, $937,250, $1,019,610, $1,212,960, and $1,225,000 over the next six years. An investment of $83 gen..

  Financial statement and internal financial controls of intel

What type of audit opinion was given for the financial statements and the internal financial controls of Intel?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd