The Bottom-Up Approach to Computing the Operating Cash Flow Applies

Multiple Choice

The bottom-up approach to computing the operating cash flow applies only when:

A) both the depreciation expense and the interest expense are equal to zero.
B) the interest expense is equal to zero.
C) the project is a cost-cutting project.
D) no fixed assets are required for a project.
E) both taxes and the interest expense are equal to zero.