Changes in the tax code that slow down depreciation ____ the present value of investment cash flows and therefore make the investment ____ desirable.

Question

Quizplus · Accepted Answer

Slowing down depreciation means that it takes longer for investors to receive tax deductions on their investment, reducing the present value of investment cash flows. This decrease in present value makes the investment less desirable.

Changes in the Tax Code That Slow Down Depreciation ____