You are analyzing a project and have developed the following estimates.The depreciation is $14,800 a year and the tax rate is 35 percent.What is the base case operating cash flow?

Name: You are analyzing a project and have developed the following estimates.The depreciation is $14,800 a year and the tax rate is 35 percent.What is the base case operating cash flow?
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Question

Quizplus · Accepted Answer

Base case operating cash flow = [2,300 × ($53 - $35) - $16,000] × [1 - 0.35] + [$14,800 × 0.35] = $21,690

You Are Analyzing a Project and Have Developed the Following