• (A) the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life.
• (B) no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
• (C) depreciation recapture equals cost basis minus an asset’s book value at the time of disposal, that is, if the salvage value is less than the asset’s cost basis.
• (D) cash flows normally include depreciation expenses since they represent a cost of doing business.