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.

User Account

All Pages