question 13

- Suppose a comporation can change its depreciation method so that its tax payments will decrease by $5,000 this year but increase by 55,600 next year. The change wil increase the value of the company because the value of the cash sevings this year exceeds the cost of the cash giyrnenits nest year. The change will decrease the value of the company because irvestors dont bke changes in accounting methods. The change will decrease the value of the company because lower tax payments this year result from lower reported income The change wil have no impoct on the value of the company because les cash fow over time will be the same