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Business, 17.08.2021 18:10 ny01282005
Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because:
a. depreciation is a sunk cost.
b. although it is a non-cash expense, depreciation has an impact on the taxes paid by the firm, which is a cash flow.
c. the firm has a cash outflow equal to the depreciation expense each year.
d. it represents a tax-deductible cash expense.
e. None of the above is correct.
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