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Chapter 6
Chapter 6
Review Questions:
| 1. | False. Cash flows refers to money that will be generated through the acqaisition of new eqaipment that decreases expenses and costs or increases income. |
| 2. | True. |
| 3. | False. The payback method calculates the time it takes to generate additional cash flow eqaal to the cost of the eqaipment. |
| 4. | False. The time value of money refers to present value of money as it relates to the future value of the same amount. |
| 5. | b. |
| 6. | False. Leasing usually does not result in significant tax advantages. |
