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NEW QUESTION: 1
A. Option B
B. Option C
C. Option A
D. Option D
Answer: C
NEW QUESTION: 2
The use of an accelerated method instead of the straight-line method of depreciation in computing the net
present value of a project has the effect of:
A. Raising the hurdle rate necessary to justify the project.
B. Increasing the present value of the depreciation tax shield.
C. Lowering the net present value of the project.
D. Increasing the cash outflows at the initial point of the project.
Answer: B
Explanation:
Rule: The greater the depreciation expense, the greater the depreciation tax shield.
Deprecation Tax Shield =
Depreciation Expense * Marginal Tax Rate
Choice "c" is correct. Use of an accelerated method instead of the straight-line method of depreciation in
computing the NPV of a project has the effect of increasing the PV of the deprecation tax shield.
Choice "a" is incorrect. Depreciation method does not affect the hurdle rate. The hurdle rate is
independently selected by management.
Choice "b" is incorrect. Using an accelerated method instead of the straight-line method of depreciation
will increase the present value of the deprecation tax shield and therefore increase the net present value
of the project.
Choice "d" is incorrect. Depreciation method does not affect cash outflows at the initial point of the project.
NEW QUESTION: 3
Which three components can you configure in Oracle Cloud Infrastructure Identity and Access Management?
A. Groups
B. VCNs
C. Instances
D. Policies
E. Users
Answer: A,D,E
Explanation:
Explanation: https://docs.us-phoenix-
1.oraclecloud.com/Content/Identity/Concepts/overview.htm
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