salvage value

问题如下：

Assume U.S. GAAP applies unless otherwise noted. All else equal, the net profit margin for a company will be highest if, for new depreciable assets, that company uses:

选项：

A.Low salvage value estimates and long average lives. B.High salvage value estimates and long average lives. C.High salvage value estimates and short average lives.

解释：

A high salvage value estimate reduces the depreciable base and thus depreciation expense; long average lives reduce the annual depreciation expense for any given depreciable base. The combination of the two would result in the lowest depreciation expense, which leads to the highest net income and profit margins.