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What is the likely effect of the action on net income

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Question 1: As the economy becomes more and more depressed, a company's management decides to slash spending on research and development. What is the likely effect of this action on net income? Net income will be;

Select one:

a. higher this period and higher in future periods.

b. higher this period and lower in future periods.

c. lower this period and higher in future periods.

d. lower this period and lower in future periods.

Reference no: EM132569769

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