lepreciation must be paid for during the year. The federal tax rate is 21% (ignore any possible state corporate taxes). Berndt has no debt. nearest dollar. Net income: 5 Net cash flow: $ I. If depreclation doubled, taxable income would not be affected since depreclation and amortization are non-cash expenses. Net cash flow would double. II. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would be unaffected. III. If depreciation doubled, taxable incame would fall to zero, taxes would be zero, and net cash flow would rise. TV. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would decline. I. If depreciation were halved, taxable income and taxes would rise but net cash flow would fall. II. If depreciation were halved, taxable income, taxes, and net cash flow would all rise. III. If depreclation were halved, taxable income and taxes would decline but net cash flow would rise. TV. If depreciation were halved, taxable income, taxes, and net cash flow would all decline. V. Tf depreciation were halved, taxable income and net cash flow would rise but taxes would fall. d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why? Important to them than net income. important to them than net income. important to them than net income. important to them than net cash flows. important to them than net cash flows