In a plant expansion capital budgeting decision, which of the following amounts would be affected by a change in the tax rate?

Question

Quizplus · Accepted Answer

A change in the tax rate would affect all the mentioned amounts: the cash inflows from increased sales (due to changes in after-tax profits), the tax savings from the depreciation tax shield (as it directly depends on the tax rate), and the cost of building repairs (as it affects the after-tax cash flow).

In a Plant Expansion Capital Budgeting Decision, Which of the Following