The bottom-up approach to computing the operating cash flow of a project applies only when

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The bottom-up approach to computing the operating cash flow of a project applies only when the interest expense is equal to zero. This is because the bottom-up approach only considers the cash inflows and outflows related to the operations of the project, and interest expense is a financing expense that is not related to the operations of the project. If the interest expense is not equal to zero, the top-down approach should be used instead.

The Bottom-Up Approach to Computing the Operating Cash Flow of a Project