Question
A proposed new project has projected sales of $128,000, costs of $62,000, and depreciation of $13,100. The tax rate is 35 percent. Calculate operating cash
A proposed new project has projected sales of $128,000, costs of $62,000, and depreciation of $13,100. 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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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
