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. |
| Approaches | Operating cash flow |
| EBIT + Depreciation - Taxes | $ ? |
| Top-down | $ ? |
| Tax-shield | $ ? |
| Bottom-up | $ ? |
| Is the answer thesame in each case? | ||
|
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
