Which of the following is an accelerated depreciation method?
A) straight-line depreciation
B) MACRS
C) net present value
D) after-tax cash flow

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) is a method of depreciation that allows for accelerated write-offs of some types of property, such as equipment, over a shorter period of time than traditional straight-line depreciation. Therefore, B is the correct answer. Straight-line depreciation is a traditional method that charges the same amount of depreciation expense to each period of an asset's useful life. Net present value and after-tax cash flow are both financial analysis methods used to evaluate investment opportunities, but they are not depreciation methods.

Which of the Following Is an Accelerated Depreciation Method