Cash Flow at Disposal of an Asset Can Be Calculated

question 15

Multiple Choice

Cash flow at disposal of an asset can be calculated as the disposal value plus the ________ on the loss.

• A)alternative minimum tax
• B)statutory tax
• C)tax shield
• D)tax credit

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Definitions:

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.