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As a CFO, we are evaluating a proposal. In year 2, the pretax profit is -1000. What do we do regarding the tax when we
As a CFO, we are evaluating a proposal. In year 2, the pretax profit is -1000. What do we do regarding the tax when we are calculating the operating cash flow? the tax rate is 21%.
tax is equal to -210 because it helps us pay less interest on this project. | ||
tax is equal to 210. We have to pay taxes even when we are making a loss. | ||
tax is equal to -210 because it can serve as an income tax shield for the company. | ||
tax is equal to 0 because we don't pay tax if we are making a loss. |
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