A Depreciation Tax Shield Is A(n)

question 3

Multiple Choice

A depreciation tax shield is a(n) :

• A) after-tax cash outflow.
• B) increase in income tax.
• C) factor that has no effect on cash flows.
• D) reduction in income tax.
• E) sporadic fluctuation in income tax.

---

Definitions:

Misspelled Words

Words that are not spelled according to the standard spelling conventions.

Space Order

An organizational method in writing that arranges ideas according to their physical location or position in space.

Irrelevant Detail

Information that is not pertinent or connected to the main topic or argument.

Topic Sentence

A sentence that summarizes the main idea of a paragraph or section of a text.