The Depreciable Life of an Asset Is of Concern to the Financial

Multiple Choice

The depreciable life of an asset is of concern to the financial manager. In general,

A) a longer depreciable life is preferred, because it will result in a faster receipt of cash flows.
B) a shorter depreciable life is preferred, because it will result in a faster receipt of cash flows.
C) a shorter depreciable life is preferred, because management can then purchase new assets, as the old assets are written off.
D) a longer depreciable life is preferred, because management can postpone purchasing new assets, since the old assets still have a useful life.