Indicate Whether Each of the Following Statements Is True or False

question 31

Short Answer

Indicate whether each of the following statements is true or false.
1. Internal rate of return measures the difference between an investment's rate of return and the company's required rate of return.
2. A spreadsheet program is useful in doing internal rate of return analyses.
3. Capital investment analyses should take tax consequences into account.
4. Depreciation on equipment or a building has the effect of sheltering some of a corporation's income from income taxes.
5. The amount of a depreciation tax shield is calculated by multiplying the amount of depreciation by (1 - the tax rate).

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Definitions:

Inhibition

The process of restraining or suppressing a response, action, or biological process.

Excitation

The process of stimulating activity in an organism or in any of its parts, often leading to increased activity or responsiveness.

Synapses

The junctions between neurons through which they communicate with each other using chemical or electrical signals.

Presynaptic Neuron

The neuron that sends a signal across the synapse to another neuron.