The Panacea of Annuity Depreciation
Berríos Burgos, Luis A.
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This paper examines the validity of the argument that symmetry between capital budgeting-decision making and post-performance evaluation can be archived by the use or annuity depreciation. The examination was made by comparing the results for a given investment project under varying sets or rename or cash flows using the annuity and straight line depreciation methods. The findings suggest that the attributes claimed by the proponents or the annuity scheme or depreciation do not stand the tests made.