2. 10.2 Calculating operating cash flow Mont Blanc Livestock Pens Ltd has projected a sales volume of $1 650 for the second year of a proposed expansion project. Expenses excluding depreciation normally run 60 per cent of revenue or about $990 in this case. The depreciation expense will be $100 and the tax rate is 30 per cent. What is the operating cash flow? Calculate your answer using all of the approaches

(including the top-down, bottom-up and tax shield approaches)

described in the chapter.