8) When using internal rate of return to evaluate investment projects, if the in

Question

8) When using internal rate of return to evaluate investment projects, if the internal rate of return is less than the required rate of return, the project would be accepted.

True or False.

9)The higher the discount rate, the higher the present value of a given future cash flow.

True or False.

19) In a plant expansion capital budgeting decision, which of the following amounts would be affected by a change in the tax rate?

21) Aardvik Corporation is considering renting a new building at an annual rent of $10,000. At a tax rate of 40%, the after-tax cost of the proposed rent would be:

The present value of the cash inflows from increased sales. The present value of the tax savings from the depreciation tax shield. The present value of the cost of building repairs needed in Year 8 of the project. All of the above.

Explanation / Answer

8.true

9.false

19.

21.10000$

22.200$

The present value of the tax savings from the depreciation tax shield.

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