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 an accelerated depreciation method commonly used in the United States for tax purposes. It allows for larger depreciation deductions in the early years of an asset's life and smaller deductions in later years. Straight-line depreciation (A) is a method that spreads the cost of an asset evenly over its useful life. Net present value (C) and after-tax cash flow (D) are not depreciation methods, but rather financial analysis tools used to evaluate investment decisions.

Which of the Following Is an Accelerated Depreciation Method