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A proposed new project has projected sales of $127,000, costs of $61,000, and depreciation of $13,000. The tax rate is 34 percent. Calculate operating cash
A proposed new project has projected sales of $127,000, costs of $61,000, and depreciation of $13,000. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches.
Approaches Operating cash flow
1) EBIT + Depreciation - Taxes$ = ?
2) Top-down$ = ?
3) Tax-shield$ = ?
4) Bottom-up$ = ?
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