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Cash flow (LO2) Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket.
Cash flow (LO2) Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. b. Assume it has $500,000 in depreciation. Re-compute its cash flow. c. How large a cash flow benefit did the depreciation provide
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