• DeYoung Devices Inc., a new high-tech instrumentation firm, is building and equipping a new manufacturing facility. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes law, which of the following would occur in the year following the change?
  
  The firm's reported net income would increase.
• The firm's operating income (EBIT) would increase.
• The firm's taxable income would increase.
• The firm's net cash flow would increase.
• The firm's tax payments would increase.

Answer rating: 100% (QA)

Answer The firms net cash flow would increase Working capital and cash flow are two of the ... View the full answer