Solutions to Chapter 1
Cash flow = $16,000 – $9,000 – $3,700 = $3,300. 9. Incremental cash flows are: b. The current market value of the painting (i.e., the cash that could have been realized by selling the art). The reduction in taxes due to its declared tax deduction. 10. Revenue $120,000. Variable costs 40,000. Fixed costs 15,000. Depreciation 40,000. Pretax ... ................
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