Question
A proposed new project has projected sales of $117,000, costs of $51,000, and depreciation of $12,000. The tax rate is 35 percent. Calculate operating cash
| A proposed new project has projected sales of $117,000, costs of $51,000, and depreciation of $12,000. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) |
| Approaches | Operating cash flow |
| EBIT + Depreciation - Taxes | $ |
| Top-down | $ |
| Tax-shield | $ |
| Bottom-up | $ |
|
| |
| Is the answer the same in each case? | ||||
|
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
