Assume a project has earnings before depreciation and taxes

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Assume a project has earnings before depreciation and taxes

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. What are the
after-tax cash flows for the project?
Answer A. $18,000 B. $19,000 C. A loss of $21,000 D. None of these

 

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