CALCULATING OPERATING CASH FLOWS Assume that a new project will annually generate revenues of S2,000,000. Cash expenses including both fixed and variable costs will be $800,000, and dcpreciation will be $200,000 per ycar. In addition, let's assume that the firm's marginal tax rate is 34 percent. Calculate the operating cash lows. and open t 1. Start Excel. Download 2. To calculate the operating cash lows,you will need to prepare an i 3. In cell B15-input the cash expenses 2mount. (1 point) Note: The ou 4. In cell B16, input the depreeiation amount. (1 point) Note: The outp S. In eell B17, caleulate the EBIT. (1 point) 6. In cell B18, calculate the taxes. ( point) Note: The output of the ex In cell B19.calculate the net income.(I point) 8. In cell B22, caleulate the change in EBIT.(1 point) 9. In cell 323, calculate the change in taxes. ( point) 10. In cell B24, calculate the change in depreciation. (1 point) Note: T 1. In cell B25, calculate the operating eash flows. ( he workbook named: Keown Ma DATA Revenues Cash expenses Annual depreciation Tax rate $2,000,000 5800,000 S200,000 34% SOLUTION Net Profit Revenues Cash expenses EBIT Taxes Net income Operating Cash Flows: Change in EBIT Change in taxes Change in depreciation Operating cash flows Show transcribed image text