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Assume a corporation has earnings before depreciation and taxes of $150,000, depreciation of $55,000, and a...

Assume a corporation has earnings before depreciation and taxes of $150,000, depreciation of $55,000, and a 40% tax bracket. a. compute its cash flow using this format: Earnings before Dep & Taxes Depreciation Earnings before Taxes Taxes Earnings after Taxes Depreciation b. Compute cash flow if depreciation is only $30,000 c. How much cash flow is lost due to the reduction of depreciation?

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