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Assume a corporation has earnings before depreciation and taxes of $109,000, depreciation of $47,000, and that it has a 40 percent tax bracket. How much
Assume a corporation has earnings before depreciation and taxes of $109,000, depreciation of $47,000, and that it has a 40 percent tax bracket.
- How much would cash flow be if there were only $15,000 in depreciation? All other factors are the same.
2. How much cash flow is lost due to the reduced depreciation from $47,000 to $15,000?
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