Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because

	a.	it represents a tax-deductible non-cash expense.
	b.	the firm has a cash outflow equal to the depreciation expense each year.
	c.	although it is a cash expense, depreciation has an impact on the taxes paid by the firm, which is a cash flow.
	d.	depreciation is a sunk cost.
	e.	None of the above is correct.