Which of the following items does NOT affect the present value of the tax deduction for depreciation expense used in the net present value calculation of an investment?
A) recovery period
B) tax rates
C) discount rate
D) gain on disposal of investment

Question

Quizplus · Accepted Answer

The gain on disposal of investment is not a factor in determining the present value of the tax deduction for depreciation expense. The recovery period, tax rates, and discount rate are all variables that affect the calculation of present value.

Which of the Following Items Does NOT Affect the Present