What is the depreciation tax shield

What is the depreciation tax shield

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Reference no: EM132020162

Consider the following income statement:

Sales $ 784,664

Costs 510,496

Depreciation 116,100

Taxes 34 % Required:

(a) Calculate the EBIT.

(b) Calculate the net income.

(c) Calculate the OCF.

(d) What is the depreciation tax shield?

Reference no: EM132020162

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