Compute its cash flow, Assume a firm has earnings before depreciation and taxes of, Accounting Basics

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Compute its cash flow

Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in a 40 percent tax bracket.
a. Compute its cash flow.
b. Assume it has $200,000 in depreciation. Recompute its cash flow.
c. How large a cash flow benefit did the depreciation provide?

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Accounting Basics: Compute its cash flow

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Accounting Basics: Compute its cash flow

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