The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is called the:

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The cash flow tax savings generated by tax-deductible depreciation expense is known as the depreciation tax shield. It is computed by multiplying the tax rate by the amount of depreciation. The calculation for depreciation tax shield is: Depreciation tax shield = Tax rate x Depreciation expense.

The Cash Flow Tax Savings Generated as a Result of a Firm's