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Assume a firm has EBAT of $640,000, and no amortization. It is in a 35 percent tax bracket. a. Compute its cash flow. Cash flow

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Assume a firm has EBAT of $640,000, and no amortization. It is in a 35 percent tax bracket. a. Compute its cash flow. Cash flow $ $ b. Assume it has $640,000 in amortization. Recompute its cash flow. Cash flow $ c. How large a cash flow benefit did the amortization provide? Benefit in cash flow $

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