If Income Taxes Are Ignored, Which of the Following Choices

question 48

Multiple Choice

If income taxes are ignored, which of the following choices correctly notes how a project's depreciation is treated under the net-present-value method and the internal-rate-of-return method? $\begin{array} { | l | l | l | l | } \hline & \text { Net Present Value } & & \text { Internal Rate of Return } \\\hline 1 & \text { Considered } & & \text { Considered } \\\hline 2 & \text { Considered }& & \text { Ignored } \\\hline 3 & \text { Ignored } & & \text { Considered } \\\hline 4 & \text { Ignored } & & \text { Ignored } \\\hline\end{array}$
$\begin{array}{|l|c|} 5 &\text {The correct answer depends on the depreciation } \\&\text { method (straight line or accelerated) that is used. }\\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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