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Author Question: We compute the profitability index of a capital budgeting proposal by A) multiplying the cash ... (Read 74 times)

jCorn1234

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We compute the profitability index of a capital budgeting proposal by
 
  A) multiplying the cash inflow by the internal rate of return.
  B) dividing the present value of the annual after-tax cash flows by the cash investment in the
  project.
  C) multiplying the internal rate of return by the cost of capital.
  D) dividing the present value of the annual after-tax cash flows by the cost of capital.

Question 2

If a firm's tax rate increases, then its weighted average cost of capital increases also.
 
  Indicate whether the statement is true or false


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gasdhashg

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jCorn1234

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Reply 2 on: Jul 10, 2018
Excellent


xiaomengxian

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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