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You have recently started working for an Australian start-up company that formed in July 2021 and specialises in manufacturing rapid diagnostic tests for COVID-19. As
You have recently started working for an Australian start-up company that formed in July 2021 and specialises in manufacturing rapid diagnostic tests for COVID-19. As the company is only in the early stages of their growth, they are particularly sensitive to cash flows. They are keen to maximise their firms value wherever possible.
Based on the above particulars, which depreciation method would you recommend this company use for tax purposes: straight-line or diminishing value? Explain in your own words why?
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