After-tax savings from an operating cash inflow are calculated by multiplying the cash flow by (1 - t), where t = the tax rate.

Question

Quizplus · Accepted Answer

This is true. The after-tax savings from an operating cash inflow can be calculated by multiplying the cash flow by (1 - t), where t is the tax rate. This is because the cash flow is subject to taxation, and the after-tax savings represent the actual amount of money available for saving or reinvestment.

After-Tax Savings from an Operating Cash Inflow Are Calculated by Multiplying