Which of the Following Best Explains Why It Is Sensible

question 65

Multiple Choice

Which of the following best explains why it is sensible for a firm to use an accelerated depreciation schedule rather than straight-line depreciation?

• A) The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV).
• B) The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses.
• C) The firm will have substantially fewer depreciation expenses later in the depreciation timeline.
• D) The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline.

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Definitions:

Pressure

The force per unit area applied on a surface or the feeling of stress or urgency induced by external or internal factors.

Parenteral Nutrition

Nutritional support provided intravenously, bypassing the usual process of eating and digestion.

Enteral Feeding

A method of supplying nutrition directly to the stomach or small intestine through a tube when oral intake is inadequate or impossible.

Infusion Discontinued

The cessation of the administration of fluids or medications directly into the bloodstream through an IV.