In general, ________. A) a longer depreciable life is ...

[sammy]

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

Question 2

A sophisticated capital budgeting technique that can be computed by solving for the discount rate that equates the present value of a project's inflows to the present value of its outflows is called internal rate of return.
 
  Indicate whether the statement is true or false

[pangili4]

Answer to Question 1

B

Answer to Question 2

TRUE

[sammy]

Gracias!

[Dinolord]

Excellent