Which of the Following Are Correct Methods of Computing the Operating

question 27

Multiple Choice

Which of the following are correct methods of computing the operating cash flow of a project assuming that the interest expense is equal to zero? I.EBIT + Depreciation − Taxes
II) EBIT − Depreciation + Taxes
III) Net Income − Depreciation
IV) [(Sales − Costs) × (1 − Tax rate) ] + [Depreciation × Tax rate]

• A)I and III only
• B)II and IV only
• C)II and III only
• D)I and IV only
• E)I,III,and IV only

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