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Would a project’s NPV for a typical firm be higher or lower if the firm used...

Would a project’s NPV for a typical firm be higher or lower if the firm used accelerated rather than straight-line depreciation? Explain.

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Typically, a project will have a higher NPV if the firm uses accelerated rather than straight-line depreciation. This is because the total cash flows over the project's life will be higher if accelerated depreciation is used, assuming other things held constant.

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