Given the financial manager’s preference for faster receipt of cash flows,
A. a longer depreciable life is preferred to a shorter one.
B. a shorter depreciable life is preferred to a longer one.
C. the manager is not concerned with depreciable lives, because depreciation is a non‑cash expense.
D. the manager is not concerned with depreciable lives, because once purchased, depreciation is considered a sunk cost.
Answer:B
Given the financial manager’s preference for faster receipt of cash flows,
A. a longer depreciable life is preferred to a shorter one. B. a shorter depreciable life is preferred to a longer one. C. the manager is not concerned with depreciable lives, because depreciation is a non‑cash expense. D. the manager is not concerned with depreciable lives, because once purchased, depreciation is considered a sunk cost.