Q1) The net cash flows for any year during the life of capital expenditure project are equal to the change in ____ plus the change in ____.
a. earnings before interest and taxes; depreciation
b. earnings before taxes; depreciation
c. earnings after taxes; depreciation
d. revenues; costs
Q2) Depreciation is based on the asset cost plus all of the following except:
a. shipping costs
b. increase in inventory
c. installation
d. cost of attached equipment acquired at the same time