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13. 4.00 points value: Consider the following income statement: Sales Costs Depreciation Taxes $547,440 356,160 81,000 30% Re

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Answer #1
Sales 547440
Costs 356160
Depreciation 81000
EBIT $110280
Tax(30%*110280) 33084
Net income $77196

OCF=Net income+Depreciation

=(77196+81000)=$158196

Depreciation tax shield=Depreciation*Tax rate
(81000*30%)=$24300.

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