Given a financial manager's preference for faster receipt of cash flows, ________.
A) a longer depreciable life is preferred to a shorter one
B) a shorter depreciable life is preferred to a longer one
C) the manager is not concerned with depreciable life, because depreciation is a noncash expense
D) the manager is not concerned with depreciable life, because once purchased, depreciation is considered a sunk cost
Question 2
An internal rate of return greater than the cost of capital guarantees that the firm will earn at least its required return.
Indicate whether the statement is true or false
Energy flows in a typical gasoline-powered car
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