Why Is It Likely That Firms Would Use Straight-Line Depreciation

question 6

Multiple Choice

Why is it likely that firms would use straight-line depreciation methods for depicting project analysis to shareholders or lenders, if such choice were possible?

• A)It increases the NPV of the project
• B)It decreases the tax liability of the project
• C)It mirrors the market value of the assets
• D)It allows asset balances to decline more slowly

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Definitions:

Ethical Guidelines

A set of principles designed to help professionals conduct their work in a morally responsible and research-ethical manner, often provided by professional organizations to guide the behavior of their members.

Individuals with Disabilities Act

A U.S. law that ensures students with disabilities are provided with a free appropriate public education that is tailored to their individual needs.

No Child Left Behind

A U.S. Act passed in 2001 aimed at improving educational outcomes by increasing standards and accountability for schools.

Cultural Sensitivity

The awareness, understanding, and respect for cultural differences and the ability to effectively interact with people from diverse backgrounds.