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In what manner does depreciation expense affect investment projects? Depreciatio...

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In what manner does depreciation expense affect investment projects? Depreciation expense:

reduces taxable income by the amount of the depreciation expense.

100%

reduces cash flows by the amount of the depreciation expense.

0%

reduces taxes by the amount of the depreciation expense.

0%

increases cash flows by the amount of the depreciation expense.

0%

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