UOP FIN 571 Week 4 DQ 2
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<strong>UOP</strong> <strong>FIN</strong> <strong>571</strong> <strong>Week</strong> 4 <strong>DQ</strong> 2<br />
Phyllis believes that the firm should use straight-line<br />
depreciation for a capital project because it results in higher<br />
net income during the early years of the project’s life. Joanna<br />
believes that the firm should use the modified accelerated cost<br />
recovery system depreciation because it reduces the tax<br />
liability during the early years of the project’s life. Assuming<br />
you have a choice between depreciation methods, whose advice<br />
should you follow? Why?<br />
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<strong>571</strong>-<strong>Week</strong>-4-<strong>DQ</strong>-2<br />
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