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EduPristine>Blog>CFA Qotd #3: Question of the Day

CFA Qotd #3: Question of the Day

January 29, 2011

Dear Readers,

The answer to the previous question is –

A. Transaction costs increase the losses when the returns are negative.

Here, is the Question of the Day

Changes from straight line to accelerated depreciation method result the understating which of following items in the earlier years of asset purchase? Applicable Tax rate is 30%.

  1. Tax expense
  2. Net Income after Tax
  3. Cash Flow from Investment

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