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In cash flow estimation, depreciation shelters company's income from

A. expansion

B. salvages

C. taxation

D. discounts

Answer: Option C

Solution(By Examveda Team)

In cash flow estimation, depreciation shelters company's income from taxation. Cash flow indicates a cash outflow and cash inflows. It is necessary to estimate the cash flow in the process of analyzing investment proposal. While analyzing the cash flow, it is also necessary to estimate the cash outflow as well as cash inflow.

This Question Belongs to Commerce >> Financial Management

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