If AMRC switched to accelerated depreciation from straight-line, what would be the most likely effect in the next year.
a. net profit margin would decrease
b. total asset turnover would increase
c. CFO would increase
more depreciation = less net income = less net profit margin
less asset = higher asset turnover
more depreciation = less tax = higher CFO
All of these choices seem correct. The book said C but I don’t understand what’s wrong with A and B?
