In selecting a price for a product using differential analysis, which of the following decisions should be made? The price that will result in the greatest total contribution margin, assuming fixed costs are the same for each price-quantity combination, should be selected. All of these are true. Total future revenues should exceed total future variable and fixed costs. The highest price should always be selected. If net income is $150,000 and depreciation is $10,000, what effect does depreciation have on net cash flow? Depreciation is subtracted from net income to calculate net cash flow. Depreciation is added to net income to calculate net cash flow. Depreciation does not change net income or net cash flow. Ross Company is considering a new investment proposal with a 10 year useful life. Using the following information, determine the payback period (show and label all calculations): Initial investment $ 450,000 Net cash inflow (after taxes): $120,000 each year After tax net income: $75,000