1-A sunk cost is defined as the most valuable alternative that is given up if a particular investment is undertaken.
Group starts True or False
2- Depreciation (CCA) tax shield is defined as the tax saving that results from the CCA deduction, calculated as depreciation multiplied by the corporate tax rate.
Group starts True or False
3- In Canada, depreciation for tax purposes is called ___________.
Multiple Choice
Depreciation for tax purposes.
Modified accelerated cost recovery.
Capital cost allowance.
Decelerated appreciation.
Accelerated depreciation.
4- Opportunity cost is defined as a cost that has already been incurred and cannot be removed and therefore should not be considered in an investment decision.
Group starts True or False