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Ask Anita L. Eisthen, CFA, CPA, MBA Your ...
Anita L. Eisthen, CFA, CPA, MBA
Anita L. Eisthen, CFA, CPA, MBA , Financial Advisor
Category: Finance
Satisfied Customers: 85
Experience:  Investment Advisor for over 25 years. Former Big 8 Public Accounting Firm Auditor.
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Which of the following statement is CORRECT a. Since

Resolved Question:

Which of the following statement is CORRECT?

a. Since depreciation is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.
b. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.
c. Corporations must use the same depreciation method for both stockholder reporting and tax purposes.
d. Using accelerated depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project's forecasted NPV.
e. Using accelerated depreciation rather than straight line normally has the effect of slowing down cash flows and thus reducing a project's forecasted NPV.

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Submitted: 6 years ago.
Category: Finance
Expert:  Anita L. Eisthen, CFA, CPA, MBA replied 6 years ago.

The answer is D.

 

Best wishes,

 

Anita

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