Using accelerated depreciation instead of straight-line depreciation results in a lower net income but a higher cash balance in the initial years of a fixed asset's life.

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Accelerated depreciation front-loads the depreciation expenses in the earlier years of an asset's life, resulting in lower net income due to higher expenses. However, since the depreciation expense is higher in the earlier years, it reduces the taxable income, which leads to lower tax payments and higher cash balance. This is why using accelerated depreciation results in a higher cash balance in the initial years of an asset's life.

Using Accelerated Depreciation Instead of Straight-Line Depreciation Results in a Lower