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    Lesabovee's Avatar
    Lesabovee Posts: 1, Reputation: 1
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    #1

    May 6, 2016, 01:58 PM
    Assume a firm has earnings before depreciation and taxes of 200,000 and no depreciati
    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?
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    May 6, 2016, 03:04 PM
    Please read site rules before posting homework. In short, we don't do it for you, you have to try first and then we'll see what may be needed.
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