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

question 94

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) None of these

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