When income taxes are considered in capital budgeting, the cash flows related to a company's depreciation expense would be correctly figured by taking the cash paid for depreciation and:
A. adding the result of multiplying [depreciation expense × (1 ? tax rate)].
B. adding the result of multiplying (depreciation expense × tax rate).
C. subtracting the result of multiplying [depreciation expense × (1 ? tax rate)].
D. subtracting the result of multiplying (depreciation expense × tax rate).
E. None of the answers, because there is no cash paid for depreciation.
Answer: E
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