How Does Depreciation Affect Net Cash Flows

question 47

Multiple Choice

How does depreciation affect net cash flows?

• A) Increases taxation payable
• B) Reduces taxation payable
• C) Reduces cash inflows
• D) Increases cash outflows

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Definitions:

College Tuition

The fee that institutions of higher education charge for enrollment and instruction.

Forgone Income

Potential earnings not received by choosing one alternative over another, often considered in opportunity cost calculations.

Tuition

The fee charged by educational institutions for instruction and training, typically assessed per term or per course.

Cost of Housing

The total expenses associated with acquiring and living in a home, including purchase price, rent, maintenance, and utilities.