The present value of the total depreciation tax shield will be higher when an asset uses MACRS than when depreciated straight-line.

Name: The present value of the total depreciation tax shield will be higher when an asset uses MACRS than when depreciated straight-line.
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MACRS allows for accelerated depreciation in the early years of an asset's life, resulting in a larger tax shield compared to straight-line depreciation. The present value of these tax shields will therefore be higher under MACRS.

The Present Value of the Total Depreciation Tax Shield Will