Assume You Have Just Calculated the Present Value of the Tax

question 63

Multiple Choice

Assume you have just calculated the present value of the tax shield from CCA for a lessee to be $21552. If the tax rate you use in this calculation was increased by 10% (not 10 percentage points) , howwould the present value of the tax shield from CCA change?

• A) Increase by 10%
• B) Increase by more than 10%
• C) Decrease by more than 10%
• D) Decrease by 10%

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Definitions:

Rational Functions

In psychology, cognitive processes involved in reasoning, decision-making, and problem-solving.

Intuiting

The process of understanding or knowing something immediately without conscious reasoning.

Sensing

A cognitive process that involves perceiving or noticing stimuli through the five physical senses: sight, hearing, touch, smell, and taste.

Assessment Techniques

Various methods and tools used to evaluate and measure individuals' abilities, skills, behavior, and personality.