McqMate
| Q. |
Which of the following statements is correct? |
| A. | over a project’s life, a typical business will generate a greater amount of total project cash flows (undiscounted) if a faster depreciation method is adopted. |
| B. | no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged. |
| C. | depreciation recapture equals cost basis minus an asset’s book value at the time of disposal, that is, if the salvage value is less than the asset’s cost basis. |
| D. | cash flows normally include depreciation expenses since they represent a cost of doing business. |
| Answer» B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged. | |
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