If depreciation increases by $100, assuming no taxes, what are the effects on the income statement...
If depreciation increases by $100, assuming no taxes, what are the effects on the income statement and balance sheet?Required
Net income and net PP&E increase by $100
Net income decreases $100 and net PP&E increases $100
Net income increase $100 and net PP&E decreases $100
Net income and net PP&E decrease by $100
What is the present value of a $100 payment in Year 20 if the interest rate is 10% compounded annually?Required
$56.30
$14.86
$118.05
$84.70
Homework Answers
1)
Net income and net PP&E decrease by $100
because deprecation is a expense in income statement and is also a deduction entry from the PPE balance
2)
What is the present value
=100/(1+10%)^20
=14.86
the above is answer..
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