Since the initial investment is tax deductible, does it lay any role in calculating Cash flows for Year 0 and shall we conisder Cash flow for Year 0 as 0 since it is tax deductible or do we stil conisder the CF from year 0 as -600 as initial investment? Would appreciate some help in understanding if there is any relevance to given info in question " - A machine costs $600 today (year 0). Assume this investment is fully tax-deductible, as stipulated by the new US corporate tax code of 2018.
Since the initial investment is tax deductible, does it lay any role in calculating Cash flows for Year 0 and shall we conisder Cash flow for Year 0 as 0 since it is tax deductible or do we stil conisder the CF from year 0 as -600 as initial investment? Would appreciate some help in understanding if there is any relevance to given info in question " - A machine costs $600 today (year 0). Assume this investment is fully tax-deductible, as stipulated by the new US corporate tax code of 2018.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 4P: Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8...
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Since the initial investment is tax deductible, does it lay any role in calculating Cash flows for Year 0 and shall we conisder Cash flow for Year 0 as 0 since it is tax deductible or do we stil conisder the CF from year 0 as -600 as initial investment? Would appreciate some help in understanding if there is any relevance to given info in question "
- A machine costs $600 today (year 0). Assume this investment is fully tax-deductible, as stipulated by the new US corporate tax code of 2018. |
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