When a Company Is Analyzing a Capital Project by a Discounted-Cash-Flow

question 42

Multiple Choice

When a company is analyzing a capital project by a discounted-cash-flow approach and income taxes are being considered, depreciation:

• A) should be ignored.
• B) should be considered because it results in a tax savings.
• C) should be considered because it is a fixed cost.
• D) should be considered because it is a cash inflow.
• E) should be considered because, like other expenses, it is a cash outlay related to operations.

---

Definitions:

Solidarity Theory

A sociological perspective emphasizing the unity or agreement of feeling or action, especially among individuals with a common interest; mutual support within a group.

Relative Deprivation Theory

A sociological theory that posits an individual or group's perception of disadvantage in comparison to others fuels social discontent and movements for change.

National Scope

refers to the extent or range of something that covers an entire nation or country.

Less Violent

Characterized by lower levels of physical force or aggression compared to a higher benchmark or average.