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Assume a corporation has earnings before depreciation and taxes of $115,000, depreciation of $43,000, and that it has a 40 percent tax bracket. b. How
Assume a corporation has earnings before depreciation and taxes of $115,000, depreciation of $43,000, and that it has a 40 percent tax bracket. b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same. c. How much cash flow is lost due to the reduced depreciation from $43,000 to $12,000?
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