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A project's net present value, ignoring income tax considerations, is normally affected by the:__________.
a. Proceeds from the sale of the asset to be replaced.
b. Carrying amount of the asset to be replaced by the project.
c. Amount of annual depreciation on the asset to be replaced.
d. Amount of annual depreciation on fixed assets used directly on the project.

Respuesta :

Answer:

a. Proceeds from the sale of the asset to be replaced.

Explanation:

The net present value is the value that shows the difference between the initial investment and the cash inflows after considering the discounting factor

that means the present value is discount by the rate of return

So if the income tax is ignored than the net present value could be affected by the assets sale that need to be replaced

Hence, the correct option is A.

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