Which of the Following Changes Would Not Decrease the Present

question 108

Multiple Choice

Which of the following changes would not decrease the present value of the future depreciation deductions on a specific depreciable asset?

• A)a decrease in the marginal tax rate
• B)a decrease in the discount rate
• C)a decrease in the rate of depreciation
• D)an increase in the life expectancy of the depreciable asset

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Definitions:

Imperfectly Competitive Market

A market structure where the assumptions of perfect competition, such as a large number of buyers and sellers, homogeneity of products, and free market entry and exit, are not fully met.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a standardized product.

Product Selling

The process of marketing and selling goods or services to customers.

Purely Competitive Conditions

A market scenario where numerous small suppliers offer identical products, resulting in no single supplier having any market control.