What the change will for xyz corporation

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Problem 1: The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5-year depreciation. Her accountant reviews the analysis and changes the depreciation method to 3-year depreciation. This change will

Option 1: increase the present value of the NCFs.

Option 2: decrease the present value of the NCFs.

Option 3: have no effect on the NCFs because depreciation is a non-cash expense.

Option 4: only change the NCFs if the useful life of the depreciable asset is greater than 5 years.

Reference no: EM132696904

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