The net cash flow of a project is equal to any increase in revenues brought about by the project less any increase in operating expenses and depreciation brought about by the project, multiplied by 1 - T), where T is the firm's marginal income tax rate, plus the incremental depreciation associated with the project.

Question

Quizplus · Accepted Answer

This is the formula for calculating the net cash flow of a project, taking into account the tax implications and incremental depreciation.

The Net Cash Flow of a Project Is Equal to Any