Cash flow-compute its cash flow

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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. Re compute cash flow

c. How large a cash flow benefit did the depreciation provide?

Reference no: EM13729323

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