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23 May 2018
A proposed new project has projected sales of $128,000, costs of $62,000, and depreciation of $13,100. The tax rate is 35 percent.
Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Approaches Operating cash flow EBIT + Depreciation - Taxes $
Top-down $
Tax-shield $
Bottom-up $
Is the answer the same in each case?
A proposed new project has projected sales of $128,000, costs of $62,000, and depreciation of $13,100. The tax rate is 35 percent.
Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Approaches Operating cash flow EBIT + Depreciation - Taxes $
Top-down $
Tax-shield $
Bottom-up $
Is the answer the same in each case?
Jarrod RobelLv2
25 May 2018
Related questions
A proposed new project has projected sales of $117,000, costs of $51,000, and depreciation of $12,000. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches.
| Approaches | Operating cash flow |
| EBIT + Depreciation - Taxes | $ |
| Top-down | $ |
| Tax-shield | $ |
| Bottom-up | $ |
