Which of the following is the equation for estimating operating cash flows (OCF) using the tax shield approach? Multiple choice question. OCF = (Sales − Costs) × (1 − Tax rate) + Depreciation × Tax rate OCF = (Sales − Costs) × (1 − Tax rate) OCF = (Sales − Costs) + Deprecation OCF = (Sales − Costs) × Tax rate + Depreciation × Tax rate

Which of the following is the equation for estimating operating cash flows (OCF) using the tax shield approach? Multiple choice question. OCF = (Sales − Costs) × (1 − Tax rate) + Depreciation × Tax rate OCF = (Sales − Costs) × (1 − Tax rate) OCF = (Sales − Costs) + Deprecation OCF = (Sales − Costs) × Tax rate + Depreciation × Tax rate

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 3MC

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