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A new asset will increase revenues by $60,000 and operating expenses by $20,000 per year. It will be depreciated over 2 years at $10,000 per
A new asset will increase revenues by $60,000 and operating expenses by $20,000 per year. It will be depreciated over 2 years at $10,000 per year. Your firm's marginal tax rate is 20%. Capital expenditures will be $1,000 annually but no additional working capital will be needed.
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To calculate the yearly free cash flow from the new asset we need to follow these steps Calculate an...
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
