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NEW QUESTION: 1
Which of the following statements is most correct?
A. The rate of depreciation will not affect operating cash flows, because depreciation is not a cash expense.
B. Corporations should fully account for opportunity costs when making investment decisions.
C. All of the answers are correct.
D. Corporations should fully account for sunk costs when making investment decisions.
E. None of the answers are correct.
Cash flow = Net income + depreciation; therefore, depreciation affects operating cash flows. Sunk costs should be disregarded when making investment decisions, while opportunity costs should be considered when making investment decisions, as they represent the best alternative use of an asset.
NEW QUESTION: 2
Given the code fragment:
What is the result?