A company uses straight-line instead of the units of production method of depreciation. Assuming a tax rate of zero, which statement is true as a result of its choice of depreciation methods?
A) Cash flows from operations will be less than under the straight-line method
B) Cash flows from operations will be more than under the straight-line method
C) Cash used for investing activities will be more than under the straight-line method
D) Cash used for investing activities will be less than under the straight-line method.
E) Cash flows are the same as if the straight-line method had been used.
Correct Answer:
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