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Author Question: Money magazine is dedicated exclusively to investing. Indicate whether the statement is true or ... (Read 33 times)

jon_i

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Money magazine is dedicated exclusively to investing.
 
  Indicate whether the statement is true or false

Question 2

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
  A) only change the NCFs if the useful life of the depreciable asset is greater than 5 years.
  B) increase the present value of the NCFs.
  C) decrease the present value of the NCFs.
  D) have no effect on the NCFs because depreciation is a non-cash expense.


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InfiniteSteez

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