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The Top-Down Approach to Computing the Operating Cash Flow

Question 78

Multiple Choice

The top-down approach to computing the operating cash flow


A) applies only if a project produces sales.
B) ignores all noncash items.
C) can only be used if the entire cash flows of a firm are included.
D) is equal to (Sales − Costs − Taxes + Depreciation) .
E) includes the interest expense related to a project.

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