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California mining is evaluating the introduction Rucker Truck Line (RTL) is evaluating whether the feet of tracks it owns should be replaced. If the trucks

California mining is evaluating the introduction
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Rucker Truck Line (RTL) is evaluating whether the feet of tracks it owns should be replaced. If the trucks are replaced, current operating revenues and expenses will not change, except for depreciation CX S Annual depreciation will increase from $150,000 to $175,000. Based on this information bow will the change in depreciation expense affect the incremental operating cash flows RTL examines when making its capital budgeting decision about replacing the tracks? RTL s marginal tax rate is 0 percent a After-tax operating cash flows will increase by $15,000 b. After tax operating cash flows will increase by $10,000 After tax operating cash flows will decrease by 25,000 d After-tax operating cash flows will decrease by $10,000 Because depreciation is a non-cash expense, operating cash flows should not change

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