RAG Company incurred an expense that resulted in a $50,000 outflow. Which of the following statements is false?

a. If the cash outflow is not a tax-deductible expense, the current-year tax savings of the transaction is zero.

b. If the cash outflow is a tax-deductible expense and RAGs marginal tax rate is 20%, the after-tax cost of the transaction is $40,000.

c. If the cash outflow is a tax-deductible expense and RAGs marginal tax rate is 25%, the cash tax savings of the transaction is $12,500.

d. None of the above is false.