To determine annual cash inflow, depreciation is subtracted from net income beca

ID: 2373880 • Letter: T

Question

To determine annual cash inflow, depreciation is

subtracted from net income because it is an expense.

added back to net income because it is not an outflow of cash.

subtracted from net income because it is an outflow of cash.

added back to net income because it is an inflow of cash.

A negative net present value means that the

project's rate of return exceeds the required rate of return.

project's rate of return equals the required rate of return.

project is acceptable.

project's rate of return is less than the required rate of return.

subtracted from net income because it is an expense.

added back to net income because it is not an outflow of cash. added back to net income because it is not an outflow of cash.

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