quickly. which estimate regarding an asset results in lowest cash flow 6 year useful life 0 salvage value 7 year useful life 0 salvage value 7 years useful life +salvage value
cash flow is unaffected by depreciation. Lowest net income is realized while using 6 year useful life 0 salvage value
that is actually what i thought. other inputs?
7 years useful life +salvage value gives lowest cash flow. in this case depreciation is lowest, taxable income is highest, tax paid is highest.
ah right
bingo. and a very clear explanation. Thank you