Question: In what manner does depreciation expense affect investment projects? It increases cash flows by the amount of the depreciation expense. It reduces cash flows by

In what manner does depreciation expense affect investment projects?

It increases cash flows by the amount of the depreciation expense.

It reduces cash flows by the amount of the depreciation expense.

It reduces taxes by the amount of the depreciation expense.

It reduces taxable income by the amount of the depreciation expense.

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