Next four years in earnings before depreciation and taxes

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Reference no: EM131461992

Telstar Communications is going to purchase an asset for $660,000 that will produce $320,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12–12. (This represents four years of depreciation based on the half-year convention.) The firm is in a 30 percent tax bracket. Fill in the schedule below for the next four years. ReferenceseBook & Resources WorksheetDifficulty: AdvancedLearning Objective: 12-02 Cash flow rather than earnings is used in the capital budgeting decision. Check my work ©2017 McGraw-Hill Education. All rights reserved.

Reference no: EM131461992

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