a. Why is it important to consider changes in net working capital in developing cash flows? What
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a. Why is it important to consider changes in net working capital in developing cash flows? What is the effect of doing so?
b. How is depreciation calculated for fixed assets under current tax law? What effects do expected salvage value and estimated economic life have on the calculated depreciation deduction?
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Answer 1 When developing cash flows it is crucial to incorporate changes in net working capital NWC due to the profound impact they have on a companys liquidity and shortterm solvency Net working capi...View the full answer
Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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