The depreciable life of an asset is of concern to the financial manager, and
A) a longer depreciable life is preferred, because management can postpone purchasing new assets, since the old assets still have a useful life.
B) a shorter depreciable life is preferred, because it will result in a faster receipt of cash flows.
C) a longer depreciable life is preferred, because it will result in a faster receipt of cash flows.
D) a shorter depreciable life is preferred, because management can then purchase new assets, as the old assets are written off.
Correct Answer:
Verified
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