a. Why is it important to consider changes in net working capital in developing cash flows? What

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a. Why is it important to consider changes in net working capital in developing cash flows? What is the effect of doing so?
b. How is depreciation calculated for fixed assets under current tax law? What effects do expected salvage value and estimated economic life have on the calculated depreciation deduction?

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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