Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in
Question:
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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a Earnings before depreciation and taxes 200 000 Depreciation 0 Earnings before taxes 200 000 ...View the full answer
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Related Book For
Foundations of Financial Management
ISBN: 9781259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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