Answered: After tax cash flow formula considering…

Business

Accounting

After tax cash flow formula considering current cash flows remain constant year after year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

After tax cash flow formula considering current cash flows remain constant year after year?

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

Step 1: Understanding Cash Flow after Tax

Cash flow after tax or CFAT is generally calculated to determine the cash flows of an investment or corporate project

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