Indicate whether each of the following statements is true or false.
1. Internal rate of return measures the difference between an investment's rate of return and the company's required rate of return.
2. A spreadsheet program is useful in doing internal rate of return analyses.
3. Capital investment analyses should take tax consequences into account.
4. Depreciation on equipment or a building has the effect of sheltering some of a corporation's income from income taxes.
5. The amount of a depreciation tax shield is calculated by multiplying the amount of depreciation by (1 - the tax rate).

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The Answer of Indicate whether each of the following statements is true or false.
1. Internal rate of return measures the difference between an investment's rate of return and the company's required rate of return.
2. A spreadsheet program is useful in doing internal rate of return analyses.
3. Capital investment analyses should take tax consequences into account.
4. Depreciation on equipment or a building has the effect of sheltering some of a corporation's income from income taxes.
5. The amount of a depreciation tax shield is calculated by multiplying the amount of depreciation by (1 - the tax rate).

Indicate Whether Each of the Following Statements Is True or False