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5 C. (20 Marks) Riya Ltd has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run
5 C. (20 Marks) Riya Ltd has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70% of sales, or about $1,002 in this case. The capital cost allowance will be $80, and the tax rate is 40%. What is the operating cash flow? Calculate your answer using the top down, bottom up and the tax shield approaches
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