Which of the Following Best Explains Why Is It Sensible

question 36

Multiple Choice

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

• A) The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline.
• 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 receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV).

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across synapses between neurons or from neurons to muscles.

Dermatomes

Areas of skin supplied by sensory nerves from a single spinal root, crucial for diagnosing conditions affecting the nerves and skin.

CNS

The central nervous system, comprising the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Blood-brain barrier

A semipermeable barrier of endothelial cells that prevents most substances in the blood from entering the brain, protecting it from pathogens and toxins.