Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• A) Since depreciation is not a cash expense,and since cash flows and not accounting income are the relevant input,depreciation plays no role in capital budgeting.
• B) Under current laws and regulations,corporations must use straight-line depreciation for all assets whose lives are 3 years or longer.
• C) If they use accelerated depreciation,firms will write off assets slower than they would under straight-line depreciation,and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• D) If they use accelerated depreciation,firms can write off assets faster than they could under straight-line depreciation,and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• E) If they use accelerated depreciation,firms can write off assets faster than they could under straight-line depreciation,and as a result projects' forecasted NPVs are normally higher than they would be if straight-line depreciation were required for tax purposes.

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Definitions:

Salmonella Poisoning

An infection caused by Salmonella bacteria, often leading to gastrointestinal illness and symptoms such as diarrhea and vomiting.

Exogenous Infection

An infection caused by pathogens introduced from the external environment into a host body, contrasting with those arising from the host's own flora.

Endogenous Infection

An infection caused by an infectious agent that is already present within the body, rather than being introduced from an external source.

Rotavirus

A highly contagious virus that causes gastroenteritis, especially in infants and young children, characterized by diarrhea, vomiting, and fever.