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Assume a firm has earnings before depreciation and taxes of $570,000 and depreciation of $270,000. a. If it is in a 40 percent tax bracket,

Assume a firm has earnings before depreciation and taxes of $570,000 and depreciation of $270,000.

a. If it is in a 40 percent tax bracket, compute its cash flow.

Cash Flow

b. If it is in a 25 percent tax bracket, compute its cash flow.

Cash Flow

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