Which One of the Following Is a Correct Method for Computing

question 23

Multiple Choice

Which one of the following is a correct method for computing the operating cash flow of a project assuming that the interest expense is equal to zero?

• A)EBIT + D
• B)EBIT - T
• C)NI + D
• D)(Sales - Costs) *(1 - D) * (1- T)
• E)(Sales - Costs) * (1 - T)

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Definitions:

Cartel

A formal agreement among competing firms to control prices, limit output, or divide markets to gain an advantageous market position.

Industry Output

The total production or service provision by companies within a specific industry.

Industry Profit

The total earnings generated by companies within a specific industry after covering all operating costs.

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.