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

question 97

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% tax bracket. What are the after-tax cash flows for the project?

• A) A positive $18,000
• B) A positive $19,000
• C) A loss of $21,000
• D) A positive $28,000

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