Capital Budgeting Project Assignment
February 19th, 2020
Which of the following is an acceptable way to find the operating cash flow for a capital budgeting project?
a. Top-down approach: OCF = EBIT + Depreciation – Taxes
b. Bottom-up approach: OCF = Net Income + Depreciation
c. Tax-Shield approach: OCF = (Sales – Costs)*(1-tax rate) + Depreciation*tax rate
d. All three of the above will find the project OCF.
e. None of the above. Get Finance homework help today