Explore BrainMass

Capital budgeting Cash flow

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

ABC company is evaluating its first year operating cash flows (at t=1).

Here is some related information:

Projected revenues = $1 million
Operating costs (excluding depreciation)=$0.7 million
Interest expense = $0.2 million
Depreciation expense=$0.2 million
Tax rate=40%

What is the company's operating cash flow for the first year?

© BrainMass Inc. brainmass.com March 21, 2019, 11:33 pm ad1c9bdddf

Solution Preview

Dear Student,

Please find your solution below:

Projected Revenues $1,000,000
Less ...

Solution Summary

Calculating Operating Cash Flow for a capital budgeting project are examined.