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LO5. Depreciation provides a tax reduction benefit that increases cash flow. Part A: Explain how depreciation generates actual cash flows for the company. (LO2-5) Part

LO5. Depreciation provides a tax reduction benefit that increases cash flow.

Part A: Explain how depreciation generates actual cash flows for the company. (LO2-5)

Part B: As the VP of Finance how would you use this information?

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