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Suppose a firm starts using accelerated depreciation instead of straight-line depreciation (so their depreciation expense is higher). What effect would this have on their financial statements?

a. The firm's tax payments would increase.

b. The firm's net income would increase.

c.  The firm's Additional Financing Needed would increase.

d. The firm's net cash flow would increase.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92395400

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