Which of the Following Statements Regarding CCA Is True

question 18

Multiple Choice

Which of the following statements regarding CCA is true?

• A) Since CCA deduction is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.
• B) When corporations use CCA depreciation method, the stockholder report financially looks better.
• C) CCA is a pool concept calculating values for the entire asset class, not individual assets.
• D) Using CCA declining-balance depreciation rather than straight line normally has the effect of slowing down cash flows and thus reducing a project's forecasted NPV.