Problem 12-4 Cash flow (LO12-2] Assume a firm has earnings before depreciation and taxes of $420,000 and depreciation of $120,000. a. If it is in a 40 percent tax bracket, compute its cash flow. Cash flow b. If it is in a 25 percent tax bracket, compute its cash flow. Cash flow Determine the amount of money in a savings account at the end of 1 year, given an initial deposit of $12,500 and an annual interest rate of 8 percent when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future value a. Annually b. Semiannually c. Quarterly Show transcribed image text