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Which of the following statements is true about depreciation and cash flows? Explain why the other are incorrect. (a) Depreciation does not affect cash flow,
Which of the following statements is true about depreciation and cash flows? Explain why the other are incorrect.
(a) Depreciation does not affect cash flow, and therefore must be added back to pre-tax income
(b) Depreciation is a cash outflow that reduces accounting income
(c) Accelerated depreciation methods will increase a projects net present value
(d) Accelerated depreciation methods will increase cash outflows closer to present
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