For Capital Budgeting Purposes, a Depreciation Tax Shield

For capital budgeting purposes, a depreciation tax shield

A) Is an example of an after-tax cash outflow.
B) Results in a reduction in income taxes otherwise due.
C) Refers to the expense caused by depreciation.
D) Equals the amount of depreciation expense × (1 − t) , where t = the income tax rate.
E) Is caused by the fact that depreciation does not require a cash outflow.