________________ of depreciation calculation does not take into account the interest on investments?
Correct answer: C. Sum of the years-digits method
- A. Present worth method
- B. Sinking fund method
- C. Sum of the years-digits method
- D. All A, B. and C.
Explanation
The sum-of-the-years-digits method allocates depreciation using an accelerated fraction of the depreciable cost and does not apply investment interest. Present-worth and sinking-fund methods explicitly involve the time value of money.
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