I understand that the net cash flow would increase. But in this situation that's not an option.

Helpppp

A start-up firm is making an initial investment in new plant and equipment. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes law, which of the following would occur in the year following the change? Select one: O a. The firm's taxable income would increase. b. The firm's tax payments would increase. c. The firm's net cash flow would decrease. O d. The firm's operating income (EBIT) would increase. e. The company's depreciation would increase