Question: Use formulas and link the data in your calculations. What is net income and cash flow if depreciation were increased by $ 1 million? Would
Use formulas and link the data in your calculations. What is net income and cash flow if depreciation were increased by $ 1 million? Would you expect this change in income and cash flow to have positiveegative impact on the stock price? The cash available for the firm would increase. The reduction in net income would be realized as a result in an accounting change. This change would not be due to the profitability of the company. What would be the impact on net income if depreciation was $ 1 million and interest expense was $ 2 million? What would be the impact on cash if depreciation was $ 1 million and interest expense was $ 2 million
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