Calculate maccauley company after-tax operating cash flow

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The MacCauley Company has sales of $250 million and total expenses (excluding depreciation) of $190 million. Straight-line depreciation on the company's assets is $5 million, and the maximum accelerated depreciation allowed by law is $25 million. Assume that all taxable income is taxed at 40 percent. Assume also that net working capital remains constant. Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.

Problem 1: Calculate the MacCauley Company's after-tax operating cash flow using both straight-line and accelerated depreciation.

Problem 2: What is the after-tax operating cash flow under these circumstances?

Reference no: EM132958908

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