You are analyzing a project and have developed the following estimates.The depreciation is $7,600 a year and the tax rate is 34 percent.What is the worst-case operating cash flow?

Name: You are analyzing a project and have developed the following estimates.The depreciation is $7,600 a year and the tax rate is 34 percent.What is the worst-case operating cash flow?
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Question

Quizplus · Accepted Answer

Worst-case operating cash flow = [2,500 × ($16 - $14) - $8,500] × [1 - 0.34] + [$7,600 × 0.34] = $274

You Are Analyzing a Project and Have Developed the Following