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Accelerated depreciation versus straight line depreciation

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Reference no: EM131856455

What is the main benefit of using Accelerated Depreciation versus Straight Line Depreciation?

a. The project depreciates sooner and saves the company money

b. It allows the company to defer taxes until the end of the project

c. It decreases the overall tax burden of the company

d. There is no benefit between the two

The Leaky Cauldron is considering expanding and opening a second location. Which of the following is an example of a negative within firm externality?

a. The new location is located next to a competitor

b. The new location is hard to access from the main highway

c. The new location attracts customers that typically went to the original location

d. The new location loses sales because of poor marketing 

Reference no: EM131856455

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