A company alters its minimum rate of return from


1. "Depreciation expenses have no effect on cash flows and, therefore, are not relevant in capital- expenditure analysis." Do you agree? Why or why not?

2. A company alters its minimum rate of return from year-to-year or from project-to-project. What underlying factors may prompt a company to change its minimum rate of return for capital- budgeting purposes?

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Cost Accounting: A company alters its minimum rate of return from
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