Why Do We Add the Result from the CCA Tax

question 105

Multiple Choice

Why do we add the result from the CCA tax shield to the NPV analysis?

• A)Tax shield is a cost.
• B)The CCA tax shield represents tax cash flow saved by depreciating the asset.
• C)The CCA tax shield represents tax cash flow saved by expensing the interest.
• D)None of the above

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Definitions:

First Messenger

A signaling molecule that binds to a receptor on the surface of a cell, triggering a sequence of events within the cell.

Second Messenger

is a molecule inside cells that acts to transmit signals from a receptor to a target within the cell, such as cAMP or calcium ions.

Growth Factor

A naturally occurring substance capable of stimulating cellular growth, proliferation, healing, and cellular differentiation.

Tyrosine Kinase Receptor

A plasma membrane receptor that phosphorylates the tyrosine part of proteins; when a ligand binds to the receptor, the conformation of the receptor changes and it may phosphorylate itself as well as other molecules; important in immune function and serves as a receptor for insulin.