Problemassume a project has earnings before depreciation, Ask an Expert

Accounting

Problem:

Assume a project has earnings before depreciation and taxes of $15,000, depreciation of $25,000, and that the firm has a 30 percent tax bracket.

Required:

Question: What are the after-tax cash flows for the project?

A. $18,000

B. $19,000

C. A loss of $21,000

D. None of these

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169827

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