Capital budgeting Cash flow
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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?
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Solution Summary
Calculating Operating Cash Flow for a capital budgeting project are examined.
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Projected Revenues $1,000,000
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