A project will reduce costs by $37,600 but increase depreciation $17,700. What is the operating cash...

A project will reduce costs by $37,600 but increase depreciation $17,700. What is the operating cash flow if the tax rate is 35 percent?

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Expert Solution

operating cash flow= (reduction in cost+increase in depreciation)- (reduction in cost-deprecitaion)*tax rate

=37600+17700- (37600-17700)*.35

=48335 $

note; calculated from the limited information given. Actual equation contains other parameters.

jeff jeffy answered 1 year ago

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