Which of the Following Is the Best Definition for Depreciation

question 156

Multiple Choice

Which of the following is the best definition for depreciation (CCA) tax shield?

• A) The difference between a firm's future cash flows with a project and without the project.
• B) The portion of cash flows of a new project that come at the expense of a firm's existing operations.
• C) The present value of a project's costs calculated on an annual basis.
• D) Tax saving that results from the CCA deduction, calculated as depreciation multiplied by the corporate tax rate.
• E) Evaluation of a project based on the project's incremental cash flows.

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Definitions:

Supportive Human Resource Practice

HR practices aimed at supporting employees' personal and professional needs to improve job satisfaction and organizational commitment.

Standard Deviation

A numerical metric that calculates the degree of spread or variability in a data set.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mode

The value that occurs most frequently in a given data set.