Description of this paper

A proposed new project has projected sales of $108...

Description

Solution


Question

A proposed new project has projected sales of $108,000, costs $51,000, and depreciation of $6,800. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case. The four approaches include the most common approach, the top-down approach, the bottom-up approach and the tax shield approach

 

Paper#5433 | Written in 18-Jul-2015

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