Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

• A) Using accelerated depreciation rather than straight line 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.
• 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 (e.g., straight line or accelerated) for stockholder reporting and tax purposes.
• D) Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of an item and the quantity demanded at those prices.

Cooked Tomatoes

Tomatoes that have been heated or processed, which can enhance flavor and nutritional value, such as increasing lycopene content.

Health Benefits

The positive effects on health, either physical or mental, derived from the consumption of specific goods, activities, services, or interventions.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded at those prices, typically downward sloping.