When Considering the Net Cash Inflows Resulting from a Capital-Budgeting

question 2

Multiple Choice

When considering the net cash inflows resulting from a capital-budgeting decision, taxes will

• A) reduce the amount of the cash savings by the tax rate.
• B) increase the amount of the cash savings by the tax rate.
• C) increase the amount of the cash savings by (1 - tax rate).
• D) reduce the amount of the cash savings by (1 - tax rate).
• E) increase the amount of the cash savings by (1 + tax rate).

---

Definitions:

Identical Twins

Twins who develop from a single fertilized egg that splits into two, sharing all of their genes and resembling each other closely.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging behavior to prevent weight gain.

Anorexia Nervosa

An eating disorder characterized by an abnormally low body weight, an intense fear of gaining weight, and a distorted perception of body weight and shape.

Mood Disorders

A category of psychiatric disorders characterized by disturbances in mood or emotional state, including depression and bipolar disorder.