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3. Assume a firm has depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. b. Assume it has $200,000 in

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3. Assume a firm has depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. b. Assume it has $200,000 in depreciation. Recompute its cash flow c. How large a cash flow benefit did the depreciation provide? carnings before depreciation and taxes of $200,000 and no

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