Question: When evaluating projects, were concerned with only the relevant incremental after-tax cash flows. Therefore, because depreciation is a noncash expense, we should ignore its effects

When evaluating projects, were concerned with only the relevant incremental after-tax cash flows. Therefore, because depreciation is a noncash expense, we should ignore its effects when evaluating projects. Critical evaluation

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The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.

The visual rule: If we observe an event with our own eyes, we will attach more weight to it than if someone else had described it to us.