Assume that a new project will annually generate revenues of $2,000,000. Cash expenses including both fixed and variable costs will be $800,000, and depreciation will increase by $200,000 per year. In addition, let's assume that the firm's marginal tax rate is 34 percent. Calculate the operating cash flows.© BrainMass Inc. brainmass.com June 19, 2018, 2:57 am ad1c9bdddf
The solution calculates operating cash flow in a given scenario in the excel sheet.