What is the operating cash flow for the following project? Sales are $200,000, operating costs are...
What is the operating cash flow for the following project? Sales are $200,000, operating costs are $50,000, depreciation is $20,000 and the tax rate is 30%.
Ans: OCF=111,000
**please show how you get the answer / formula used
Homework Answers
operating cash flow=(Sales-Operating costs)(1-tax rate)+Tax savings on depreciation
=(200,000-50,000)(1-0.3)+(0.3*20,000)
=$111,000.
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