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In a capital budgeting decision to undertake a plant expansion, which of the following amounts would be affected by a tax rate change? A. The
In a capital budgeting decision to undertake a plant expansion, which of the following amounts would be affected by a tax rate change?
A. The present value of the cash inflows from increased sales.
B. The present value of the tax savings from the depreciation tax shield.
C. The present value of the cost of building repairs needed in Year 8 of the project.
D. All of the above.
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