Author Question: In general, ________. A) a longer depreciable life is preferred, because it will result in a ... (Read 81 times)

sammy · **on:** Jul 10, 2018

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