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6. Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket. Compute its

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6. Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket. Compute its cash flow (3 points). b. Assume it has $500,000 in depreciation. Re-compute its cash flow(3 points). How large a cash flow benefit did the depreciation provide (2 points)

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