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primewire primewire
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A year ago
Which of the following statements best describes CCA?


▸

Under CCA rules, lower CCA deductions occur in the later years, and this reduces the early cash flows and thus lowers a project’s projected NPV.



▸

Corporations must use the same depreciation method (e.g., straight-line or CCA) for shareholder reporting and tax purposes.



▸

Since CCA is not a cash expense, it has no effect on operating cash flows and thus no effect on capital budgeting decisions.



▸

Using CCA rather than straight-line depreciation would normally have no effect on a project’s total projected cash flows but it would affect the timing of the cash flows and thus the NPV.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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chanelfargesenchanelfargesen
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A year ago
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primewire Author
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A year ago
Correct Slight Smile TY
rudy.zondo
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Yesterday
Smart ... Thanks!
Smair87
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2 hours ago
This helped my grade so much Perfect
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