Multiple Choice
Which of the following statements regarding CCA is true?
A) Since CCA 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, 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.
Correct Answer:
Verified
Correct Answer:
Verified
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