A proposed new project has projected sales of $215,000, costs of $104,000, and depreciation of $25,300. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) EBIT +Depreciation - Taxes Top-down Operating cash flow Tax-shield Bottom-up
A proposed new project has projected sales of $215,000, costs of $104,000, and depreciation of $25,300. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) EBIT +Depreciation - Taxes Top-down Operating cash flow Tax-shield Bottom-up
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![A proposed new project has projected sales of $215,000, costs of $104,000, and
depreciation of $25,300. The tax rate is 23 percent. Calculate operating cash flow using
the four different approaches. (Do not round intermediate calculations.)
EBIT + Depreciation - Taxes
Top-down
Operating cash flow
Tax-shield
Bottom-up](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3648e63c-5f72-43ae-9547-3b45613e4e55%2Fe8f1051e-55b9-4b9e-aaa1-06cccbdd77f9%2Fiz7ayb_processed.png&w=3840&q=75)
Transcribed Image Text:A proposed new project has projected sales of $215,000, costs of $104,000, and
depreciation of $25,300. The tax rate is 23 percent. Calculate operating cash flow using
the four different approaches. (Do not round intermediate calculations.)
EBIT + Depreciation - Taxes
Top-down
Operating cash flow
Tax-shield
Bottom-up
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