Homework SourseIn year three Elton llc had EBIT of 200 taxes of 40 and cash
In year three, Elton llc had EBIT of 200, taxes of 40% and cash flow of 145 . What was depreciation for year three ?
A. 20
B. 25
C. 30
D none of the above
In year three, Elton llc had EBIT of 200, taxes of 40% and cash flow of 145 . What was depreciation for year three ?
A. 20
B. 25
C. 30
D none of the above
In year three, Elton llc had EBIT of 200, taxes of 40% and cash flow of 145 . What was depreciation for year three ?
A. 20
B. 25
C. 30
D none of the above
A. 20
B. 25
C. 30
D none of the above
Solution
After-Tax Cash Flow = EBIT(1 - T) + Depreciation
145 = 200(1 - 0.4) + Depreciation
145 = 120 + Depreciation
Depreciation = 145 - 120 = 25
Hence, Option \"B\" is correct.
