[ThinkandClick]

Hi everyone i’m just confused with this MCQ:

**66. Andrew Corporation is evaluating a capital investment
that would result in a $30,000 higher contribution margin
benefi t and increased annual personnel costs of $20,000. The
effects of income taxes on the net present value computation
on these benefi ts and costs for the project are to
a. Decrease both benefi ts and costs.
b. Have no net effect on either benefi ts or costs.
c. Decrease benefi ts but increase costs.
d. Increase benefi ts but decrease costs.

the answer is A but I’m not sure how would an income tax expense decrease costs ?

Cheers