Question 10 Assuming a tax rate of 25%, $400,000 of depreciation expense will... Not yet answered Select one: Points out of 1.5 a. Reduce taxes by $100,000 b. Reduce taxes by $300,000 P Flag question C. Reduce taxes by $400,000 d. Have no effect since depreciation is not a cash expense Question 8 As a firm's weighted average cost of capital rises, a project's profitability index will... Not yet answered Select one: Points out of 1.5 a. increase b. decrease P Flag question c. remain unchanged C d. not enough information to tell