Question
A proposed new project has projected sales of $130,000, costs of $64,000, and depreciation of $13,300. The tax rate is 34 percent. Calculate operating cash
A proposed new project has projected sales of $130,000, costs of $64,000, and depreciation of $13,300. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches.
Operating cash flow EBIT + Depreciation - Taxes
$ Top-down
$ Tax-shield $
Bottom-up $
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
