Using the Tax Shield Approach, Calculate OCF Given the Following

question 234

Multiple Choice

Using the tax shield approach, calculate OCF given the following information: Sales $104,000; Costs $63,000; Depreciation $10,000. Tax rate is 40%.

• A) $32,200
• B) $31,300
• C) $30,400
• D) $29,500
• E) $28,600

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Definitions:

EEG

Electroencephalography, a non-invasive method to record electrical activity of the brain using sensors placed along the scalp.

Electrical Activity

Refers to the movement of electrical charges or signals through neurons or other tissues in the body, playing a critical role in bodily functions and processes.

Brain

The organ located in the skull responsible for cognitive functions, emotions, and controlling the body's movements.

Magnetic Resonance Imaging

A medical imaging technique used to visualize detailed internal structures using strong magnetic fields and radio waves.