question archive The tax shield approach to computing the operating cash flow, given a tax-paying firm: separates cash inflows from cash outflows
The tax shield approach to computing the operating cash flow, given a tax-paying firm: separates cash inflows from cash outflows
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The tax shield approach to computing the operating cash flow, given a tax-paying firm:
| separates cash inflows from cash outflows. | |
| is based on the fact that depreciation does not affect the operating cash flows. | |
| considers the changes in net working capital resulting from a new project. | |
| recognizes that depreciation creates a cash inflow. | |
| ignores both interest expense and taxes. |
