How Are the Following Items Used in the Calculation of the Net

question 52

Multiple Choice

How are the following items used in the calculation of the net present value of a proposed project? (Ignore income tax considerations.)

$\begin{array}{lll}\underline { \text { Depreciation Expense } }&\underline { \text { Salvage Value } }\\\text { A) Include } & \text { Include } \\\text { B) Include } & \text { Exclude } \\\text { C) Exclude } & \text { Include } \\\text { D) Exclude } & \text { Exclude }\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

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