Computing eac of using asset

Assignment Help Project Management
Reference no: EM1338996

A. Phyllis believes that the firm should use straight-line depreciation for a capital project because it results in higher net income during the early years of the project's life. Joanna believes that the firm should use the modified accelerated cost recovery system depreciation because it reduces the tax liability during the early years of the project's life. Assuming you have a choice between depreciation methods, whose advice should you follow? Why?

B. Depreciation provides a sort of shield against taxes. If there were no taxes, there would be no depreciation tax shields. Does this mean that a project's NPV would be less if there were no taxes?

C. The total present value of all costs associated with an asset over a seven-year life is $73,285. If the asset has a cost of capital of 11%, what is the EAC of using this asset?

Reference no: EM1338996

Questions Cloud

Explain where one would fin cross-linked disulfide bonds : Determine where the chain would be more likely to show beta bends or reverse turns.explain where one would fin cross-linked disulfide bonds.
Explain whistle-blowers discussion : Explain Whistle-Blowers Discussion and Will the court agree with R&P's conclusion that Roxberry was not a whistleblower
What intracellular second messenger is primary regualator : What intracellular messenger is primary regulator of adaptation of photoreceptors?What Intracellular second messenger is primary regualator.
Determine the actual output : An effective capacity of 6,600 and an efficiency of 88%, determine the actual (planned) output.
Computing eac of using asset : The total present value of all costs associated with an asset over a seven-year life is $73,285. If the asset has a cost of capital of 11%, what is the EAC of using this asset?
Art and culture changing views of nature : How are art and culture a reflection of our changing views of nature, society and the individual? Provide TWO examples.
Explain contracts of sale and dual representation : Explain Contracts of sale and dual representation and David resisted on the ground that Perry had suffered no damage for the reason that Alice had been given no discretion and the sale was made upon the exact basis authorized by Perry
Needs of customer rather than the bureaucracy : Write a project proposal: How to lead and meet the needs of the customer rather than the bureaucracy.
Define the impact of this cycle on the typical resting : Describe the molecular events that generate the "dark current" in photoreceptor cells;define the impact of this cycle on the typical resting.

Reviews

Write a Review

 

Project Management Questions & Answers

  Computing appraisal cost for quality last year

The following table lists all costs of quality incurred by Sam's Surf Shop last year. What was Sam's appraisal cost for quality last year?

  Determining critical path and project duration

Determine the critical path and project duration.

  It work-related project using systems analysis

Prepare a paper that analyzes an IT work-related project or fictitious project using systems analysis for a selected business system at the department or division level.

  Expected time to complete a task with optimistic times

What is the expected time to complete a task with optimistic, most likely, and pessimistic times of 3, 4, and 7 days, respectively?

  Benefits of document management systems

What are three benefits of document management systems?

  Developing comprehensive project scope analysis

Develop a comprehensive project scope analysis. The conceptual development process, scope statement and statement of work that will clearly detail the projects.

  Explaining five-layer behavioral model

What is the five-layer behavioral model? What are some other models that can assist in team building?

  Replenishing an atm by bank

How much cash should the bank keep at an ATM if its annual cost of money is 10%? How often should the bank replenish an ATM?

  Identify the technical challenges by project leader

Recommend three actions that the project leader should take in order to identify and understand the technical challenges and issues facing the project

  What happens when critical path is missed or delayed

What happens to the project if a task on the Critical Path is missed or delayed. What about a task on a non-critical path that is missed or delayed?

  Benefits to the project lifecycle

Discuss the benefits to the project lifecycle by commencing the planning proccess at the concept and design stages of a construction project.

  Role of project management in modern organizations

Describe the role of project management in modern organizations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd