When income taxes are considered in capital budgeting, the cash flows would be correctly figured by
A) adding the result of multiplying (depreciation expense x tax rate) .
B) adding the result of multiplying [depreciation expense x (1 - tax rate) ].
C) subtracting the result of multiplying (depreciation expense x tax rate) .
D) subtracting the result of multiplying [depreciation expense x (1 - tax rate) ].
E) doing nothing because there is no cash paid for depreciation.
Correct Answer:
Verified
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