Ronnie's Coffee House is considering a project which will produce sales of €6,000 and increase cash expenses by €2,500.If the project is implemented, taxes will increase by €1,300.The
Additional depreciation expense will be €1,000.An initial cash outlay of €2,000 is required for net
Working capital.What is the amount of the operating cash flow using the top-down approach?
A) €200
B) €1,500
C) €2,200
D) €3,500
E) €4,200
Correct Answer:
Verified
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