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    Exam 9: Using Discounted Cash-Flow Analysis to Make Investment Decisions
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    A Tax Shield Is Equal to the Reduction In
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A Tax Shield Is Equal to the Reduction In

Question 37

Question 37

Multiple Choice

A tax shield is equal to the reduction in:


A) Tax liability resulting from a deductible expense
B) Taxable income resulting from a deductible expense
C) Cash flow from an expense
D) Net income

Correct Answer:

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