14.

A company is considering a proposed expansion to its facilities. Which of the following statements is most accurate regarding operating cash flows?

Group of answer choices

When estimating the project's operating cash flows, the tax effects on the sale of any old equipment must be factored in.

Since depreciation is a non-cash expense, the firm does not need to know the depreciation rate when calculating the operating cash flows.

In calculating the project's operating cash flows, the firm should not subtract out financing costs like interest expense, since these costs are already included in the WACC, which is used to discount the project's net cash flows.

All of the statements are correct.