Lesabovee
May 6, 2016, 01:58 PM
Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is the 40 percent tax bracket.
a) compute it's cash flow
b) Assume it as $200,000 in depreciation, recompute it's cash flow
c)w large a cash flow benefit did the depreciation provide?
a) compute it's cash flow
b) Assume it as $200,000 in depreciation, recompute it's cash flow
c)w large a cash flow benefit did the depreciation provide?