All other factors held constant,the higher the tax rate that firms must pay,the more valuable are depreciation deductions.

Name: All other factors held constant,the higher the tax rate that firms must pay,the more valuable are depreciation deductions.
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When tax rates are high, depreciation deductions reduce a firm's taxable income, resulting in a lower tax liability. Therefore, a higher tax rate makes depreciation deductions more valuable as they can provide significant tax savings for the firm.

All Other Factors Held Constant,the Higher the Tax Rate That