You are analyzing a project and have developed the following estimates.The depreciation is $19,800 a year and the tax rate is 34 percent.What is the best-case operating cash flow?

Name: You are analyzing a project and have developed the following estimates.The depreciation is $19,800 a year and the tax rate is 34 percent.What is the best-case operating cash flow?
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Question

Quizplus · Accepted Answer

Best-case operating cash flow = [4,900 × ($65 - $44) - $21,500] × [1 - 0.34] + [$19,800 × 0.34] = $60,456

You Are Analyzing a Project and Have Developed the Following