Assume a Project Has Earnings Before Depreciation and Taxes of $15,000,depreciation

question 72

Multiple Choice

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?

• A) $18,000
• B) $19,000
• C) A loss of $21,000
• D) $25,000

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Definitions:

Implicit

Implicit refers to something implied or understood though not directly expressed or stated. It is often contrasted with explicit, which is clear and direct.

Programmed Decisions

Decisions that are routine and repetitive, for which algorithms or established procedures can be developed to handle them.

Organizational

Pertaining to the structured arrangement and management of an organization, including its processes, systems, and practices.

Passive

Characterizes a lack of action or inactivity, often referring to behaviors or attitudes where individuals do not actively engage or assert themselves in situations.