evaluate each statement ( true or false and why?)

Statement 1: Choosing a positive salvage value in MACRS depreciation will lead to a higher tax saving compared to depreciating the asset to the same salvage value using straight-line depreciation.

Statement 2: Managerial resources, beside financial resources, may limit the number of projects that can be included in a firm's capital budget.

Statement 3: Similar to free cash flow to the firm (FCFF), interest expense should be added back to the net cash flow (NCF) to adjust for capital structure choices.

Statement 4: Improving the operating income by $100, CP, will increase free cash flow to firm, free cash flow to equity, and net cash flows by the same amount.