The capital budgeting manager for XYZ Corporation, a very profitable high technology company, completed her analysis of Project A assuming 5 year depreciation. He accountant reviews the analysis and change the depreciation method to 3 year depreciation. This change will, ________
- Increase the present value of the net cash flow
- Decrease the present value of the net cash flow
- Have no effect on the net cash flow because depreciation is a non cash expense
- Only change the net cash flows if the useful life of the depreciable asset is greater than five years.