Which of the following are correct methods of computing the operating cash flow of a project assuming that the interest expense is equal to zero? I.EBIT + Depreciation − Taxes
II)EBIT − Depreciation + Taxes
III)Net Income − Depreciation
IV)[(Sales − Costs)× (1 − Tax rate)] + [Depreciation × Tax rate]

Question

Quizplus · Accepted Answer

Operating cash flow can be calculated using I (EBIT + Depreciation − Taxes) and IV ([(Sales − Costs)× (1 − Tax rate)] + [Depreciation × Tax rate]) when interest expense is zero.

Which of the Following Are Correct Methods of Computing the Operating