Which of the Following Is the Proper Calculation to Find

question 67

Multiple Choice

Which of the following is the proper calculation to find the depreciation tax shield?

• A) IRR times the depreciation deduction in a year
• B) Tax rate times depreciation deduction in a year
• C) IRR divided by the depreciation deduction in a year
• D) Tax rate times the total depreciation deductions over the life of an asset

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Definitions:

GMAT Scores

Numerical scores resulting from taking the Graduate Management Admission Test, used by graduate business schools for admissions purposes.

Mean Score

A statistical metric representing the average value of a set of numbers.

Frequency Distribution

A summary of data showing the number (frequency) of observations in each of several non-overlapping categories or bins.

GMAT Scores

Scores obtained from the Graduate Management Admission Test, which assesses certain analytical, writing, quantitative, verbal, and reading skills.