Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas MACRS-ADS does not. b. The half-year convention has the effect of depreciating over n − 1 full years (2, 3, . . . , n), and two half-years (1 and n + 1). c. The investment’s property class establishes the number of years over which the cost basis is to be recovered (depreciated). d. In general, MACRS-GDS has a longer recovery period (depreciation period) than MACRS-ADS.

Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas MACRS-ADS does not. b. The half-year convention has the effect of depreciating over n − 1 full years (2, 3, . . . , n), and two half-years (1 and n + 1). c. The investment’s property class establishes the number of years over which the cost basis is to be recovered (depreciated). d. In general, MACRS-GDS has a longer recovery period (depreciation period) than MACRS-ADS.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 8QTD

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