What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?

Related Mcqs:

1. What refers to the present worth of cost associated with an asset for an infinite period of time ?

   A. Annual cost B. Increment cost C. Capitalized cost D. Operating cost...

2. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?

   A. 7 eyars B. 8 years C. 9 years D. 10 years...

3. In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

   A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method...

4. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?

   A. P 3,279.27 B. P 3,927.27 C. P 3,729.27 D. P 3,792.72...

5. In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?

   A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method...

6. What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?

   A. Functional depreciation B. Design depreciation C. Physical depreciation D. Demand depreciation...

7. What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?

   A. Functional depreciation B. Design depreciation C. Physical depreciation D. Demand depreciation...

8. As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?

   A. Annuity B. Amortization C. Capital recovery D. Annuity factor...

9. What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%?

   A. P 150.56 B. P 152.88 C. P 153.89 D. P 151.09...

10. What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually ?

    A. P 7,654.04 B. P 7,731.29 C. P 7,420.89 D. P 7,590.12...