The depreciable life of an asset is of concern to the financial manager. In gene
ID: 2692536 • Letter: T
Question
The depreciable life of an asset is of concern to the financial manager. 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.Explanation / Answer
B
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