of buying the equipment. If Daily does so, which cash flows would increase and which would decrease? How does this compare to MACRS? Is the above statement true or false? (Select from the drop-down menu.) equipment is deducted from taxes that year. tax deduction to year 0 , the present value of the incremental free cash flows would increase under bonus depreciation. cash flow will be higher in year 0, but lower in years 1 through 5 , and the present value of those cash flows will be greater. flow will be higher in year 0, but lower in years 1 through 5 , and the present value of those cash flows will be greater