When Using the APV Methodology, What Is the NPV of the Depreciation

question 99

Multiple Choice

When using the APV methodology, what is the NPV of the depreciation tax shield?

• A)$32,051.52
• B)$25,777.35
• C)$22,794.65
• D)$97,152.98
• E)None of the above

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Definitions:

Inventory Turnover

A ratio showing how often a company has sold and replaced its inventory during a certain period, indicating the efficiency of inventory management.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity.

Total Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing its total liabilities by its total assets.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the profitability.