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A proposed new project has projected sales of $132,000, costs of $66,000, and depreciation of $13,500. The tax rate is 30 percent. Calculate operating cash
A proposed new project has projected sales of $132,000, costs of $66,000, and depreciation of $13,500. The tax rate is 30 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 the same in each case? | ||||
|
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Key Financial Market Concepts
Authors: Bob Steiner
2nd Edition
0273750127, 978-0273750123
