Homework SourseIn year four Carson llc had EBIT of 100 Taxes were 40 and de
In year four, Carson llc had EBIT of 100. Taxes were 40% and depreciation was 20. What was the cash flow in year four?
A. 20
B. 60
C. 80
D. 100
In year four, Carson llc had EBIT of 100. Taxes were 40% and depreciation was 20. What was the cash flow in year four?
A. 20
B. 60
C. 80
D. 100
A. 20
B. 60
C. 80
D. 100
Solution
EBIT is 100
Taxes are 40%
Depreciation was 20
The Formula for Cash Flow:
EBIT(1-Tax Rate) + Depreciation
=100(1- 40%) + 20
= 60 + 20
= 80
So, The answer is Option C(80)
