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Question 5 If a company depreciates its fixed assets over 6 years as opposed to 10 years, in the EARLY years of using the more

Question 5

If a company depreciates its fixed assets over 6 years as opposed to 10 years, in the EARLY years of using the more accelerated depreciation, net income would ______, tax payments would __, and cash flow would

1. increase; decrease; increase

2. decrease; decrease; increase

3. decrease; increase; increase

4. increase; increase; decrease

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