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undefined Question 4 2 pts The Elm Corporation expects to have sales of $22 million. Costs other than depreciation are expected to be 75% of
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Question 4 2 pts The Elm Corporation expects to have sales of $22 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be $2.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Elm's federal-plus-state tax rate is 20%. Elm has no debt. Suppose Congress changed the tax laws so that Elm's depreciation expense doubled. No changes in operations occurred. What would be Elm's net cash flow under the new law? $5.8 mill $5.0 mill $5.4 mill $5.3 millStep by Step Solution
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