Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
yuknam yuknam
wrote...
Posts: 503
Rep: 9 0
4 years ago
Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation?

▸ The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses.

▸ The firm will have substantially fewer depreciation expenses later in the depreciation timeline.

▸ The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV).

▸ The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 81 times
2 Replies
Replies
Answer verified by a subject expert
eltoroeltoro
wrote...
Posts: 375
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

yuknam Author
wrote...
4 years ago
Brilliant
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  998 People Browsing
Related Images
  
 297
  
 677
  
 138