If Depreciation Expense Is Taken Over 5 Years Rather Than

question 64

Multiple Choice

If depreciation expense is taken over 5 years rather than 3 years, all things equal,

• A) net present value will go down.
• B) depreciation has no effect on net present value.
• C) net present value will go up.
• D) the answer depends on the company's marginal tax rate.

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Definitions:

Subscapular Vein

A vein located beneath the scapula, responsible for draining blood from the shoulder and upper back areas.

Internal Thoracic Vein

A vein located along the inner side of the thoracic wall, draining blood from the chest wall and breasts back to the heart.

Superior Vena Cava

A large vein carrying deoxygenated blood from the upper half of the body to the heart's right atrium.

Inferior Vena Cava

The largest vein in the human body, carrying deoxygenated blood from the lower half of the body to the heart.