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Why is accelerated depreciation (MACRs) useful for a firm? Since depreciation is not a cash flow, it is not useful, merely required by the tax
Why is accelerated depreciation (MACRs) useful for a firm?
Since depreciation is not a cash flow, it is not useful, merely required by the tax code | ||
Accelerating the depreciation reduces book value; increasing book-value based return ratios | ||
MACRs is consistently applied in other countries | ||
MACRS reduces taxes and increases cash flow |
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