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Which One of the Following Is a Correct Method for Computing

Question 3

Multiple Choice

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


A) EBIT + Depreciation
B) EBIT(1 + Taxes)
C) Net income + Depreciation
D) (Sales − Costs) (1 − Depreciation) (1 − Taxes)
E) (Sales − Costs) (1 − Taxes)

Correct Answer:

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