Question
New equipment has a cost of $40,000 and a useful life of four years. The company has a marginal tax rate of 40% and chooses
New equipment has a cost of $40,000 and a useful life of four years. The company has a marginal tax rate of 40% and chooses to depreciate straight line over four years. If EBITD (1-T) = 30,000. What is the annual operating cash flow (OCF)?"
| "$10,000 " | ||
| "$34,000 " | ||
| "$40,000 " | ||
| "$70,000 " |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
