Dutcome Two

Question $1,5\mathrm{.}1-20$

HW Score: $0\%,0$ of $100$ poinis

Points: $0$ of $20$

Suppose a corporation can change its depreciation method so that its tax payments will decrease by $$5,000$ this yea but increase by $$5,000$ next year.

A$.$ The change will decrease the value of the company because lower tax payments this year result from lower reported income.

B$.$ The change will decrease the value of the company because investors don't like changes in accounting methods.

C$.$ The change will have no impact on the value of the company because its cash flow over time will be the same.

D$.$ The change will increase the value of the company because the value of the cash savings this year exceeds the cost of the cash payments next year