When Calculating Operating Cash Flow for a Project, One Would

question 101

Multiple Choice

When calculating operating cash flow for a project, one would calculate it as being mathematically equal to which of the following?

• A) EBIT − Interest − Taxes + Depreciation
• B) EBIT − Taxes
• C) EBIT + Depreciation
• D) EBIT − Taxes + Depreciation

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Definitions:

Long Run

A period in economic theory where all factors of production and costs are variable, allowing companies to adjust to market conditions fully.

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit from the market are easy, and no single seller can influence the market price.

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, freely available information, and no barriers to entry or exit.