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

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 3MC

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