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Chemtec marginal tax rate on earnings

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Chemtec is expecting sales of $250 million and costs of $125 million. There are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience $50 million of depreciation.

Assume that Chemtec's marginal tax rate on earnings is 35%.

Assuming that all of these cash flow occur at the end of the first year, what is the first year's free cash flow?

Reference no: EM131412070

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