The Operating Cash Flow of a Cost-Cutting Project

Multiple Choice

The operating cash flow of a cost-cutting project:

A) is equal to the depreciation tax shield.
B) is equal to zero because there is no incremental sales.
C) can only be analyzed by projecting the sales and costs for a firm's entire operations.
D) includes any changes that occur in the current accounts.
E) can be positive even though there are no sales.