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Author Question: Which of the following statements best describes CCA? (Read 89 times)

lauraleepop

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on: Aug 7, 2023
Which of the following statements best describes CCA?

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Under CCA rules, lower CCA deductions occur in the later years, and this reduces the early cash flows and thus lowers a project’s projected NPV.


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Corporations must use the same depreciation method (e.g., straight-line or CCA) for shareholder reporting and tax purposes.


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Since CCA is not a cash expense, it has no effect on operating cash flows and thus no effect on capital budgeting decisions.


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Using CCA rather than straight-line depreciation would normally have no effect on a project’s total projected cash flows but it would affect the timing of the cash flows and thus the NPV.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by lauraleepop on Aug 7, 2023

fdsajkl

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lauraleepop

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Reply 2 on: Aug 7, 2023
:D TYSM

meganmoser117

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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