Question
A proposed new project has projected sales of $120,000, costs of $54,000, and depreciation of $12,300. The tax rate is 35 percent. Calculate operating cash
A proposed new project has projected sales of $120,000, costs of $54,000, and depreciation of $12,300. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches.
| 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 Routledge Handbook Of State Owned Enterprises
Authors: Luc Bernier, Massimo Florio, Philippe Bance
1st Edition
1138487694, 978-1138487697
