The tax effects are significant in capital budgeting decisions.

Name: The tax effects are significant in capital budgeting decisions.
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Question

Quizplus · Accepted Answer

The tax effects, including tax rates, tax deductions, and credits, can impact the amount of cash flows generated by a project and ultimately affect the net present value (NPV) and internal rate of return (IRR) of the project. Therefore, they are significant in capital budgeting decisions.

The Tax Effects Are Significant in Capital Budgeting Decisions