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1. The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is called the:
A. depreciable basis.
B. depreciation tax shield.
C. after-tax salvage value.
D. after-tax depreciation savings.
E. operating cash flow.
2. A cost that has already been paid, or the liability to pay has already been incurred is call a(n):
A. opportunity cost.
B. sunk cost.
C. salvage value expense.
D. erosion cost.
E. net working capital expense.
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