How does depreciation spread the capital expenditure of a project over the life of the capital asset?

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How does depreciation spread the capital expenditure of a project over the life of the capital asset? Why is using MACRS usually beneficial to a company versus using straight-line depreciation?

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Financial Management Core Concepts

ISBN: 978-0132671033

2nd edition

Authors: Raymond M Brooks

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Question Posted: May 08, 2014 07:58 AM

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How does depreciation spread the capital expenditure of a project over the life of the capital asset?

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The original cost of new equipment or other large assets is not expensed on the ...View the full answer

Financial Management Core Concepts

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