Firms a and B Are in All Points Identical with the Exception

question 2

Multiple Choice

Firms A and B are in all points identical with the exception of their choice of depreciation method for their fixed assets.Firm A uses an accelerated depreciation method while firm B used a straight-line method.In the first year of their operations,which firm has the higher EBITDA

• A) Firm A has the higher EBITDA.
• B) Both firms have the same EBITDA.
• C) Firm B has the higher EBITDA.

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Definitions:

Conception

The moment when a sperm fertilizes an egg, leading to the beginning of pregnancy.

Testicular

Related to the testes, the male reproductive glands that produce sperm and testosterone.

Uterus

A female reproductive organ in mammals, including humans, where offspring are conceived and in which they gestate before birth.

Genetic Defect

A hereditary condition resulting from an abnormality in an individual's DNA.