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A company experiencing a 40% marginal tax rate makes an investment (paying cash) of $1,000 in a equipment with a ten year useful life and

A company experiencing a 40% marginal tax rate makes an investment (paying cash) of $1,000 in a equipment with a ten year useful life and generates $150 of incremental EBIT from the investment every year following the investment -

A) What will the impact on cash flow from operations be in the following year?

B) What will the impact on free cash flow in the following year?

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