BUSN 5200 F2 2022: The depreciable life of an asset is of concern to the financial manager. In general,

Posted: December 23rd, 2022

The depreciable life of an asset is of concern to the financial manager. In general,

a longer depreciable life is preferred, because it will result in a faster receipt of cash flows.

a shorter depreciable life is preferred, because it will result in a faster receipt of cash flows.

a shorter depreciable life is preferred, because management can then purchase new assets, as the old assets are written off.

a longer depreciable life is preferred, because management can postpone purchasing new assets, since the old assets still have a useful life.

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