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Why must changes in depreciation expense be included in the operating cash flows of a capital budgeting project? A. Depreciation is a cash expense. B.

Why must changes in depreciation expense be included in the operating cash flows of a capital budgeting project?

A. Depreciation is a cash expense. B. All else being equal, an increase in depreciation expense causes a decrease in taxes. C. All else being equal, a decrease in depreciation expense causes a decrease in taxes. D. Changes in depreciation expense should not be included in the operating cash flows. E. Both A and B are true.

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