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Annual After-Tax Corporate Net Income Can Be Converted to Annual

Question 102

Multiple Choice

Annual after-tax corporate net income can be converted to annual after-tax cash flow by


A) adding back the depreciation amount.
B) deducting the depreciation amount.
C) adding back the quantity (t ´ depreciation deduction) ,where t is the corporate tax rate.
D) deducting the quantity [(1- t) ´ depreciation deduction],where t is the corporate tax rate.

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