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Author Question: A start-up firm is making an initial investment in new plant and equipment. Assume that currently ... (Read 64 times)

eboni

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on: Aug 7, 2023
A start-up firm is making an initial investment in new plant and equipment. Assume that currently its equipment is being depreciated on a straight-line basis over 6 years, but now in Year 2 the company must depreciate the equipment over 9 years. Assume for this question that the company uses the same depreciation method for tax and shareholder reporting purposes. What would occur in Year 2?

◦

The firm’s taxable income would decrease.


◦

The firm’s reported net income would decrease.


◦

The firm’s tax payments would decrease.


◦

The firm’s net cash flow would decrease.

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

Talvinder.Singh

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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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eboni

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

alvinum

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

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