Depreciation

Question: Depreciation
[A].

costs (on annual basis) are constant when the straight line method is used for its determination.

[B].

is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.

[C].

does figure in the calculation of income tax liability on cash flows from an investment.

[D].

all (a), (b) and (c).

Answer: Option D

Explanation:

No answer description available for this question.

Payback period

Question: Payback period
[A].

and economic life of a project are the same.

[B].

is the length of time over which the earnings on a project equals the investment.

[C].

is affected by the variation in earnings after the recovery of the investment.

[D].

all (a), (b) and (c).

Answer: Option B

Explanation:

No answer description available for this question.

If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by

Question: If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by
[A].

(1 + i)n/S

[B].

S/(1 + i)n

[C].

S/(1 + in)

[D].

S/(1 + n)i

Answer: Option B

Explanation:

No answer description available for this question.