CPA MCQ CPA Module 43 Andrew Corporation is evaluating a capital investment that would result in $30,000 higher contribution margin benefit with increased annual personnel costs of $20,000. In calculating the net present value of benefits and costs, income taxes would:

Andrew Corporation is evaluating a capital investment that would result in $30,000 higher contribution margin benefit with increased annual personnel costs of $20,000. In calculating the net present value of benefits and costs, income taxes would:

CPA Module 43

Andrew Corporation is evaluating a capital investment that would result in $30,000 higher contribution margin benefit with increased annual personnel costs of $20,000. In calculating the net present value of benefits and costs, income taxes would:

a. Decrease both the amount of the benefits and costs.
b. Have no net effect on either the amount of the benefits or costs.
c. Decrease the amount of the benefits but increase the amount of the costs.
d. Increase the amount of the benefits but decrease the amount of the costs.

Answer: a

CPA MCQ

Andrew Corporation is evaluating a capital investment that would result in $30,000 higher contribution margin benefit with increased annual personnel costs of $20,000. In calculating the net present value of benefits and costs, income taxes would:

Andrew Corporation is evaluating a capital investment that would result in $30,000 higher contribution margin benefit with increased annual personnel costs of $20,000. In calculating the net present value of benefits and costs, income taxes would:

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