The accelerated write-off of capital costs in MACRS depreciation provi

The accelerated write-off of capital costs in MACRS depreciation provides a taxable expense that reduces taxes at a faster rate than with straight-line depreciation.

Therefore, according to ________ concepts, we can surmise that bigger tax cuts in the earlier years and lower tax cuts in the later years are better than a steady tax cut each year.
A) time-value of money
B) depreciation and sunk costs
C) depreciation and opportunity costs
D) interest rate

ANSWER

Answer: A