You are analyzing a project and have developed the following estimates.The depreciation is $52,000 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 $52,000 a year and the tax rate is 34 percent.What is the worst-case operating cash flow?
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Quizplus · Accepted Answer

Worst-case operating cash flow = [5,900 × ($65 - $46) - $66,000] × [1 - 0.34] + [$52,000 × 0.34] = $48,106

You Are Analyzing a Project and Have Developed the Following