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Assume a firm has EBAT of $530,000, and no amortization. It is in a 40...

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Finance

Assume a firm has EBAT of $530,000, and no amortization. It is in a 40 percent tax bracket.

a. Compute its cash flow.

Cash flow $

b. Assume it has $530,000 in amortization. Recompute its cash flow.

Cash flow $

c. How large a cash flow benefit did the amortization provide?

Benefit in cash flow $

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