Assuming that the interest expense is equal to zero

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Reference no: EM132005758

Which of the following are correct methods of computing the operating cash flow of a project assuming that the interest expense is equal to zero?

I. EBIT + Depreciation − Taxes

II. EBIT − Depreciation + Taxes

III. Net Income − Depreciation

IV. [(Sales − Costs) × (1 − Tax rate)] + [Depreciation × Tax rate]

O I, III, and IV only

O II and III only

O II and IV only

O I and IV only

O I and III only

Reference no: EM132005758

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