A Five Year Recovery Period for a Long-Term Asset Means

Multiple Choice

A five year recovery period for a long-term asset means ________.

A) the number of years it takes to recover the cost of a long-term asset
B) the number of years a company expects to use a long-term asset
C) the number of years a company can depreciate a long-term asset for tax purposes
D) the number of years a long-term asset will generate future cash inflows