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Assume a firm has earnings before depreciation and taxes of $680,000 and no depreciation. It is in a 40 percent tax bracket. a. Compute its
Assume a firm has earnings before depreciation and taxes of $680,000 and no depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. Cash flow b. Assume it has $680,000 in depreciation. Recompute its cash flow. Cash flow c. How large a cash flow benefit did the depreciation provide? Benefit in cash flow
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