When income taxes are considered in capital budgeting, the cash flows related to a company's depreciation expense would be correctly figured by taking the cash paid for depreciation and:
A) adding the result of multiplying (depreciation expense × tax rate) .
B) adding the result of multiplying [depreciation expense × (1 - tax rate) ].
C) subtracting the result of multiplying (depreciation expense × tax rate) .
D) subtracting the result of multiplying [depreciation expense × (1 - tax rate) ].
E) None of the other answers because there is no cash paid for depreciation.
Correct Answer:
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