111. With respect to Finance in Action: Global, which of the following is NOT true: Analytic Blooms: Understand Difficulty: Challenge Learning Objective: 02-05 Depreciation provides a tax reduction benefit that increases cash flow. 112. Assuming a tax rate of 40%, depreciation expenses of $500,000 will Tax savings from depreciation = Depreciation × tax rate = $500,000 × .40 = $200,000
111. With respect to Finance in Action: Global, which of the following is NOT true: Analytic Blooms: Understand Difficulty: Challenge Learning Objective: 02-05 Depreciation provides a tax reduction benefit that increases cash flow. 112. Assuming a tax rate of 40%, depreciation expenses of $500,000 will Tax savings from depreciation = Depreciation × tax rate = $500,000 × .40 = $200,000
Corporate-Finance-Foundations-Global-Edition-15th-Edition-Block,-Hirt,-Danielsen-Test-Bank.docx