The Depreciation Tax Shield Is Defined as the Cash Flow

The depreciation tax shield is defined as the cash flow created by:

A) Any reduction in the marginal tax rate as a result of an increase in the depreciation expense.
B) The sale of a depreciated fixed asset.
C) The tax savings which result from the depreciation expense.
D) The initial purchase of a depreciable fixed asset.
E) The use of MACRS depreciation instead of straight-line depreciation.