You are analyzing a project and have developed the following estimates.The depreciation is $3,200 a year and the tax rate is 34 percent.What is the best-case operating cash flow?

Name: You are analyzing a project and have developed the following estimates.The depreciation is $3,200 a year and the tax rate is 34 percent.What is the best-case operating cash flow?
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Question

Quizplus · Accepted Answer

Best-case operating cash flow = [1,750 × ($33 - $16) - $5,000] × [1 - 0.34] + [$3,200 × 0.34] = $17,423

You Are Analyzing a Project and Have Developed the Following