MC algo 10-12 Calculating OCF You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow? Multiple Choice $63,850 $28,970 $87,230 $46,410 $69,790

MC algo 10-12 Calculating OCF You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow? Multiple Choice $63,850 $28,970 $87,230 $46,410 $69,790

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 7PROB

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Question

MC algo 10-12 Calculating OCF

You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow?

Multiple Choice

$63,850
$28,970
$87,230
$46,410
$69,790

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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A company has a project available with the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 35,990 12,570 14,740 19,660 11,000 If the required return for the project is 7.9 percent, what is the project's NPV? Multiple Choice $21,980.00 $11,078.65 $3,970.46 $12,085.80 $13,812.35
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