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The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5-year depreciation. Her accountant reviews

The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5-year depreciation. Her accountant reviews the analysis and changes the depreciation method to 3-year depreciation. This change will

increase the present value of the NCFs.

decrease the present value of the NCFs.

have no effect on the NCFs because depreciation is a non-cash expense.

only change the NCFs if the useful life of the depreciable asset is greater than 5 years.

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