Which of the following items below does NOT require an explicit adjustment for inflation?
A) future operating cash flows
B) future disposal value of a long-term asset
C) future tax deductions for depreciation
D) future overhaul cost for equipment

Question

Quizplus · Accepted Answer

Future tax deductions for depreciation are already adjusted for inflation through the use of inflation-adjusted depreciation methods such as MACRS (Modified Accelerated Cost Recovery System) or ACRS (Accelerated Cost Recovery System). The other items listed would require explicit adjustment for inflation.

Which of the Following Items Below Does NOT Require an Explicit