What is the firm yr 1 incremental after-tax cash flow

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Let's say a firm with a 34% marginal tax rate considers an investment that is expected to reduce the cost of labor from $10,000 to $9,000 in Year One. What is the firm's Yr 1 incremental after-tax cash flow from this reduction in labor costs?

What is the formula? please explain.

 

Reference no: EM13265678

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