Under the modified accelerated-cost-recovery system of depreciation, cash flow tends to decline with the passage of time.

Name: Under the modified accelerated-cost-recovery system of depreciation, cash flow tends to decline with the passage of time.
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Under the modified accelerated-cost-recovery system (MACRS), depreciation deductions are larger in the early years of an asset's life and decline in later years. This means that cash flow from depreciation will also decline over time.

Under the Modified Accelerated-Cost-Recovery System of Depreciation, Cash Flow Tends