Which of the Following Statements Is CORRECT

question 57

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.
• E) Under accelerated depreciation,higher depreciation charges occur in the early years,and this reduces the early cash flows and thus lowers a project's projected NPV.

---

Definitions:

In-Depth Interviews

Qualitative research methods involving detailed, open-ended conversations with individuals to explore their thoughts, feelings, and behaviors on a particular subject.

Focus Group

A qualitative research method where a small, diverse group of people discusses a product, service, or concept to gain insights.

Product Changes

Modifications or improvements made to a product to enhance its appeal, functionality, or market competitiveness.

Promotional Strategies

Planned actions designed to communicate the value of a product or service to customers to increase sales.