Choice "B" is correct. Depreciation is used in capital budgeting for determining tax costs or benefits of a decision. Asset value is determined based on the present value of its future after-tax cash flows. After-tax cash flows are the most relevant to cash flow decisions and consider the tax impact of depreciation deductions.Choice "d" is incorrect. Depreciation is a noncash expense and is not included in cash or other costs. Depreciation is relevant from the standpoint of the cash flows it generates through its tax shielding effect.Choice "c" is incorrect. Depreciation is not excluded from capital budgeting decisions. Its value in reducing taxes and impacting cash flows is included capital budgeting decisions.Choice "a" is incorrect. Depreciation is not a component of salvage value.