Suppose, S= 500, C= 200, depreciation = 80, and t = 40%..
How do you apply S-C-T here? And what is T?
Answer should come to 212.
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T is for tax.
500-200=300*(1-0.40)=180
But if you are doing this you have to add depreciation tax shield i.e. 80*0.40=32
Hence, 180+32=212
else 500-200-80=220*(1-0.40)=132+80=212.