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  3. true or false? 5. ___ a 15% discount rate was

True or False? 5. ___ A 15% discount rate was used...

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Accounting

True or False?

5. ___ A 15% discount rate was used to compute the net present value of a project. If the NPV
is positive, the internal rate of return is lower than 15%.
6. ___ The time value of money is part of the internal rate of return model for capital budeting.
7. ___ When the NPV of a project is negative, the IRR would be lower than the discount rate
used to compute the NPV.
8. ___ The net cash effect of $30,000 depreciation expense per year, assuming a 40% income tax
rate, is an $18,000 cash inflow per year.
9. ___ When income taxes are considered, the effects of depreciation expense have a negative
present value.
10.___ The after tax effect of depreciation expense on net cash inflows for a year is the depreciation

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