To think critically about: The depreciation tax shield Introduction: The measurement of the amount of cash that a firm generates by its normal business operation is the operating cash flow . Thus, it indicates whether the firm can generate the adequate positive cash flow for the maintenance and growth of its operation or it needs any external financing.

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Chapter 10.5, Problem 10.5BCQ

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To think critically about: The depreciation tax shield

Introduction:

The measurement of the amount of cash that a firm generates by its normal business operation is the operating cash flow. Thus, it indicates whether the firm can generate the adequate positive cash flow for the maintenance and growth of its operation or it needs any external financing.

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