Compute after-tax cash flows for the project


Assume a project has earnings before depreciation and taxes of $15,000, depreciation of $25,000, and that the firm has a 30 percent tax bracket. What are the after-tax cash flows for the project? Answer

A. $18,000

B. $19,000

C. A loss of $21,000

D. None of these

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Finance Basics: Compute after-tax cash flows for the project
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