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JRJ Corporation expects to have sales of $ 1 5 million and costs other than depreciation of $ 1 2 million. Depreciation is expected to
JRJ Corporation expects to have sales of $ million and costs other than depreciation of $ million. Depreciation is expected to amount to $ million, and interest expense is expected to total $ Sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. JRJs tax rate is
a What is JRJs expected net cash flow from operations?
b Suppose Congress changed the tax laws so that JRJs depreciation expenses doubled, but no changes in operations occurred. How much would JRJ save in taxes?
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