Business, 11.04.2021 22:10 tjmoney7709
Assume that you decide to convert R&D expenses into capital assets for all firms. This will generally
have an impact on operating income. For which of the following firms will the increase in operating
income (resulting from this adjustment) be greatest?
a) A firm with a long amortizable life for R&D and stable R&D expenses over time.
b) A firm with a short amortizable life for R&D and growing R&D expenses over time
c) A firm with a long amortizable life for R&D and growing R&D expenses over time.
d) A firm with a short amortizable life for R&D and stable R&D expenses over time​
Answers: 2
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Assume that you decide to convert R&D expenses into capital assets for all firms. This will gene...
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