Given a financial manager's preference for faster receipt of cash flows, a longer depreciable life is preferred to a shorter one.

Name: Given a financial manager's preference for faster receipt of cash flows, a longer depreciable life is preferred to a shorter one.
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Question

Quizplus · Accepted Answer

A longer depreciable life means that the useful life of the asset is longer and therefore the company will receive less cash flows in the earlier years. Thus, a shorter depreciable life is preferred for faster receipt of cash flows.

Given a Financial Manager's Preference for Faster Receipt of Cash