Question: For a project, if we use the straight-line method to depreciate the fixed assets the depreciation expense in each year of the useful life of
For a project, if we use the straight-line method to depreciate the fixed assets the depreciation expense in each year of the useful life of the asset is $10,000 (for 5 years). We could instead use the declining balance technique in which case the depreciation expense in the 5 years would be $11,700, $11,000, $10,500,9,800, $7,000. The cash generated in year 5 using the straight-line method is higher than when we use the declining balance technique.(t/f)
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