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Your client believes that the income taxes saved as a result of depreciation deductions are irrelevant in capital budgeting decisions because depreciation is not a check the business writes (outflow).

Clarify how depreciation impacts taxes and therefore cash flows of potential projects.

Depreciation deductions cause tax
Select Option outflowsinflows
to
Select Option increasedecrease
because they reduce
Select Option taxable incometax deductions
.
Select an assignment template