Multiple Choice
Firms favour assets with high CCA rates because:
A) they have longer economic lives.
B) it reduces the total amount of taxes paid over the project's life.
C) they increase net accounting profits over the project's life.
D) their choice impacts project net present value favourably.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: Capital budgeting proposals should be evaluated as
Q71: Cash flow from operations = (revenues −
Q76: Projects that are calculated as having negative
Q91: The rationale for not including sunk costs
Q98: The present value at any given discount
Q101: Chan forecasts revenues of $320,000 a year.Variable
Q102: Recalculate the NPV for the proposal
Q104: A project anticipates net cash flows of
Q105: Chan has been in the chemical industry
Q107: Why is it fairly easy to fall