When income taxes are considered in capital budgeting, the cash flows related to a company's advertising expense would be correctly figured by taking the cash paid for advertising and:
A) adding the result of multiplying (advertising expense x tax rate) .
B) adding the tax rate.
C) adding the result of multiplying [advertising expense x (1 - tax rate) ].
D) subtracting the result of multiplying (advertising expense x tax rate) .
E) subtracting the result of multiplying [advertising expense x (1 - tax rate) ].
Correct Answer:
Verified
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