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Bath Works Company has $72,000 of depreciation expense and is subject to a 40% income tax rate. On an after-tax basis, depreciation results in a:

Bath Works Company has $72,000 of depreciation expense and is subject to a 40% income tax rate. On an after-tax basis, depreciation results in a:

$28,800 inflow.

$28,800 outflow.

$43,200 inflow.

$43,200 outflow.

neither an inflow nor an outflow because depreciation is a noncash expense.

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