everything else being equal, the the depreciation expense is in a given year, the a foreign project's npv will be. a. higher; lower b. higher; higher c. lower; higher d. none of these are correct.

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Zoechild1963idn Zoechild1963idn

01-12-2022
Business

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everything else being equal, the the depreciation expense is in a given year, the a foreign project's npv will be. a. higher; lower b. higher; higher c. lower; higher d. none of these are correct.

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Contexto38idn Contexto38idn · Answer 1 · 2022-12-05T13:20:17-05:00

When other factors are held constant, if the depreciation expense for a project is higher, then its NPV will also be higher. Therefore, the option B holds true.

Depreciation expense can be referred to or considered as the expense incurred by an organization towards the decrease in the value of its assets. It is noteworthy to mention that there is a direct relationship between the NPV and the depreciation expense of an asset. Moreover, such expense is an indirect expense for the organization, and is thus, shown in the profit and loss accounts of the organization for the given period, as such.

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