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.
Correct Answer:
Verified
Q97: The pre-tax cost of capital is higher
Q98: The rate of interest that produces a
Q99: If the total cash inflows associated with
Q100: As the marginal tax rate goes up,the
Q101: Income taxes are levied on
A)net cash flow.
B)income
Q103: McDonald Industries is considering the purchase of
Q104: Which of the following are tax deductible
Q105: Sensitivity analysis is
A)an appropriate response to uncertainty
Q106: Multiplying the depreciation deduction by the tax
Q107: Which of the following best represents a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents