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The Windom Co. has sales of \$845,960, costs of \$578,402, interest expense of \$42,750, and a marginal tax rate of

35%. The company also has \$1,299,998 in fixed assets that are being depreciated in a 15% CCA class (you may assume that the ½ year rule has been applied to all of the assets in the pool in the past). What is the operating cash flow for the current year? answer is 257125

it seems using tax shielding, i try the numeric way to get that number,(845960-578402)*(1-0.35)+(1299998*0.15)*0.35+42750*0.35, but i don't know why

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Answer Operating cash... View the full answer

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