Question
A proposed new project has projected sales of $121,000, costs of $55,000, and depreciation of $12,400. The tax rate is 34 percent. Calculate operating cash
A proposed new project has projected sales of $121,000, costs of $55,000, and depreciation of $12,400. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches.(Do not round intermediate calculations.)
ApproachesOperating cash flowEBIT + Depreciation - Taxes$
Top-down$
Tax-shield$
Bottom-up$
Is the answer thesame in each case?YesNo
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
