1. Assuming a tax rate of 35%, depreciation expenses of $400,000 will:
reduce income by $140,000.
reduce taxes by $140,000.
reduce taxes by $400,000.
2. You have $2,000 today. What is the Future Value of this $2,000 in 15 years assuming an annual appreciation rate of 7.5%?
$2,075.85
$2,078.45
$2,080.22
$5,917.76
3. Assume that the interest rate (i) is positive, and that the future value is greater than the present value. As you increase the number of periods, the interest rate required for a given present value to become a given future value will: (increase / decrease)