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A firm pays a tax of 21%. If Depreciation is increased, which of the following will also increase? I. Taxes Paid II. Net Income III.

A firm pays a tax of 21%. If Depreciation is increased, which of the following will also increase?

I. Taxes Paid

II. Net Income

III. Cash Flow from Operations (OCF)

I and II

III only

I and III

II and III

None will increase

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