All of the Following Would Be a Result of Changing

question 53

Multiple Choice

All of the following would be a result of changing to the MACRS method of depreciation EXCEPT

• A) higher depreciation expense.
• B) lower taxes in the early years of a project's life.
• C) lower taxable income in the early years of a project's life.
• D) All of these choices are correct.

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Definitions:

Dollar-Weighted Return

is a method for calculating the return on an investment, taking into account the timing of cash flows into and out of the investment, often used to measure the performance of a portfolio.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Jensen Measure

A performance metric that calculates the excess return of a portfolio over the predicted return by the Capital Asset Pricing Model (CAPM).

Risk-Free Return

The return on an investment with no risk of financial loss, typically associated with government bonds.