Which of the Following Statements Best Describes CCA

Multiple Choice

Which of the following statements best describes CCA?

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.