RWJ 7th Edition Solutions
The depreciation tax shield shows us the increase in OCF by being able to expense depreciation. 5. To calculate the OCF, we first need to calculate net income. The income statement is: Sales $ 85,000. Variable costs 43,000. Depreciation 3,000. EBT $ 39,000. Taxes@35% 13,650. Net income $ 25,350. Using the most common financial calculation for ... ................
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