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    Before-Tax Cash Flow

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    Holter Inc. owns an investment that generated $120,000 cash revenue and required $26,500 cash expenses this year. Holter's marginal tax rate is 30%. Which of the following statements is false?

    A. Holter's before-tax cash flow is $93,500
    B. If the revenue is taxable, but only $19,000 of the expenses are deductible, Holter's
    after-tax cash flow is $63,200
    C. If only $105,000 of the revenue is taxable, but all the expenses are deductible, Holter's
    after-tax cash flow is $69,950
    D. None of the above is false

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    https://brainmass.com/business/accounting/before-tax-cash-flow-236215

    Solution Preview

    Holter Inc. owns an investment that generated $120,000 cash revenue and required $26,500 ...

    Solution Summary

    Response discusses before-tax cash flow

    $2.19

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