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Author Question: Which of the following statements regarding CCA is true? (Read 98 times)

nods

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Which of the following statements regarding CCA is true?

Companies calculate CCA not on individual assets, but rather by asset class. 


When corporations use CCA, the shareholder report financially looks better.


Since CCA is a cash expense, the slower an asset is depreciated, the higher the projected NPV from investing in the asset.


Using CCA declining balance depreciation rather than straight line normally has the effect of slowing down cash flows and thus increasing a project’s forecasted NPV.



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Marked as best answer by nods on Aug 7, 2023

Tester

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nods

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Reply 2 on: Aug 7, 2023
Excellent


ttt030911

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Reply 3 on: Yesterday
:D TYSM

 

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