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

Solution Summary

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

$2.19