9.4 The present value at 10% of these four cash flows is $8,377. The tax rate is T = 35%. Taxes paid will be TX (revenue-expenses-depreciation)=.35x(600-300-200)=$35 Operating cash flow can be calculated as follows.

a. Revenue expenses - taxes = 600-300-35 $265

b. Net profit + depreciation = (600 - 300 - 200-35)+200 = 65+ 200 = 265

c. (Revenues-cash expenses) x (1-tax rate) + (depreciation X tax rate) = (600 - 300) x (1.35)+(200 x .35) = 265