Question: QUESTION 1 1 points Save A start-up firm is making an initial investment in new plant and equipment. Assume that currently its equipment must be

QUESTION 1 1 points Save A start-up firm is making an initial investment in new plant and equipment. 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? O The firm's reported net income would increase O The firm's tax payments would increase. O The firm's taxable income would increase. O The firm's operating income (EBIT) would increase. O The firm's cash flow would increase

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