A project costs $$2,000,000$ and will be depreciated to a value of zero using straight$-$line

depreciation over the $20-$year life of the project. If the tax rate is $30\%,$ how will the depreciation

affect the cash flow of the project each year?

A$.$ Decrease cash flow by $$100,000$

B$.$ Decrease cash flow by $$70,000$

C$.$ Increase cash flow by $$30,000$

D$.$ Increase cash flow by $$70,000$

E$.$ Depreciation is not a cash flow, so it will have no affect