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Your company has just replaced some usable equipment with a new machine that will reduce the cost of production. Which of the following is true?

Your company has just replaced some usable equipment with a new machine that will reduce the cost of production. Which of the following is true?

Depreciating the asset will tend to increase the taxes paid.

Reducing the costs will decrease the OCF.

Reducing the costs will tend to increase the taxes paid.

The machine must have replaced a machine that was fully depreciated.

The tax rate will change over the life of a project.

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