Which one of the following will decrease net income (NI) but increase cash flow from assets (CFFA) in this year for a tax-paying firm, all else remaining constant?
Remember:
NI=(Rev−COGS−FC−Depr−IntExp).(1−tc) CFFA=NI+Depr-CapEx - ΔNWC+IntExpWhich one of the following will decrease net income (NI) but increase cash flow from assets (CFFA) in this year for a tax-paying firm, all else remaining constant?
Remember:
NI=(Rev−COGS−FC−Depr−IntExp).(1−tc) CFFA=NI+Depr-CapEx - ΔNWC+IntExp