After-tax cash operating flows are equal to
A)(one minus the tax rate)times (net income).
B)(one minus the tax rate)times (operating income)plus CCA.
C)(one minus the tax rate)times (sales less costs excluding CCA).
D)sales less (one minus the tax rate)times (cash costs).
E)(one minus the tax rate)times (sales less costs including CCA).

Question

Quizplus · Accepted Answer

After-tax cash operating flows are calculated by taking the sales and subtracting the costs excluding Capital Cost Allowance (CCA), then adjusting for taxes by multiplying by (1 - tax rate).

After-Tax Cash Operating Flows Are Equal to