=> Installation costs are normally treated as part of the
outlay for the project (cash outflow at t = 0), but are capitalized
for tax purposes (added to the value of the asset) and charged as
depreciation over the life of the project.
True
False
=> When evaluating a project on an after tax basis using NPV
any tax losses are ignored.
True
False
=> Using discounted payback. A conventional project
that has a discount payback period less than its useful life cannot
have a negative NPV.
True
False
=> Interest paid on debt (borrowing) is tax deductible. This
creates a tax shield. For this reason the interest tax shield
should be added when determing Net Cash Flows After Tax
[NCFAT].
True
False
- Please Help And Answer All Installation Costs Are Normally Treated As Part Of The Outlay For The Project Cash Outfl 1 (34.51 KiB) Viewed 44 times