Question
Assume a firm has earnings before depreciation and taxes of $520,000 and no depreciation. It is in a 35 percent tax bracket. a. Compute its
Assume a firm has earnings before depreciation and taxes of $520,000 and no depreciation. It is in a 35 percent tax bracket.
a. Compute its cash flow.
b. Assume it has $520,000 in depreciation. Recompute its cash flow.
c. How large a cash flow benefit did the depreciation provide?
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Fundamentals Of Financial Planning
Authors: Michael A Dalton, Joseph Gillice
3rd Edition
1936602091, 9781936602094
