4. Inflation impacts which of the following -Market Interest Rates Earning power

Question

4. Inflation impacts which of the following -Market Interest Rates Earning power Purchasing power Consumer Price Index 5. Which of the following are not part inflation impacts? (a) Borrowers repay historical loan amounts with dollars of decreased purchasing (b) Depreciation expenses are based on lasts replacement costs and routinely (c) Depreciation expense is charged to taxable income in dollars of declining (d) Inflated salvage value combined with book values based on historical costs power, reducing the debt-financing cost expressed in constant dollars values; taxable income is overstated, resulting in higher taxes results in higher taxable gains. Economic Service Life is based upon which of the following factors? (a) Minimum annual equivalent costs (b) Price of a new item (c) Salvage value (d) Sales projections 6. 7. Which of the following factors are considered when defining MARR? (a) Net equity flow (b) Cost of equity (c) Opportunity cost (d) Lending interest rate

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

4)

Inflation is a gradual rise in prices of goods and services over a period of time. Due to inflation, the purchasing power of money falls as less of a good or service can be bought with the same amount of money

So, as per above discussion, option C is the correct option

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