The tax shield approach to computing the operating cash flow, given a tax-paying firm: Select one: a. separates cash inflows from cash outflows. b. considers the changes in net working capital resulting from a new project. c. recognizes that depreciation creates a cash inflow. d. ignores all noncash expenses and their effects. e. ignores both interest expense and taxes.

c. recognizes that depreciation creates a cash inflow

Explanation:

The formula to compute the operating cash flow is shown below:

Operating cash flow = Earning before interest and taxes  + Depreciation - Income tax expense  

Since as we can see that after computing the earning before interest and taxes we added back the depreciation expense and deduct the income tax expense so that the proper value could arrive

Hence, option c is correct              

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the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.