Depreciation tax shields
Question:
Depreciation provides a sort of shield against taxes. If there were no taxes, there would be no depreciation tax shields. Does this mean that a project's NPV would be less if there were no taxes? Explain.
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a. What is the payback period? b. What is the net present value of the two projects?
Depreciation provides a sort of shield against taxes. If there were no taxes, there would be no depreciation tax shields.
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Research Aptitude - Research skills will add value to your work within any graduate program or workplace industry.
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