Depreciation Must Be Considered When Evaluating the Incremental Operating Cash

question 22

Multiple Choice

Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because

• A)it represents a tax-deductible cash expense.
• B)the firm has a cash outflow equal to the depreciation expense each year.
• C)although it is a non-cash expense, depreciation has an impact on the taxes paid by the firm, which is a cash flow.
• D)depreciation is a sunk cost.
• E)None of the above is correct.

---

Definitions:

Lesbians

Women who are romantically and sexually attracted to other women.

Bisexuals

People who seek emotional-sexual relationships with members of both genders.

Emotional Intimacy

A state of closeness between two individuals marked by a deep emotional connection and the sharing of personal feelings or thoughts.

Shared Interests

Common hobbies, preferences, or activities that individuals or groups enjoy together, facilitating bonding and social interaction.