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

question 49

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 non-current assets are required for the project.
• E)taxes are ignored and the interest expense is equal to zero.

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