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The depreciation tax shield is Select one: A. a reduction in taxes in the year a new asset is placed in service. B. the

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The depreciation tax shield is Select one: A. a reduction in taxes in the year a new asset is placed in service. B. the reduction in taxes due to the deductibility of depreciation from taxable revenues., OC. the increase in taxes due the addition of depreciation to operating income in computing operating cash flows. D. computed as [(one minus the tax rate) times depreciation].

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