Which One of the Following Is a Correct Method for Computing

question 65

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:

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another in exchange for value.

Sum Certain In Money

A specified, fixed, or exact amount of money that is owed or due to be paid under a contract or agreement.

Enforceable Contract

a valid agreement between parties that can be legally upheld and compelled in a court of law.

Payment

The transfer of money or goods from one party to another as a fulfillment of a transaction or obligation.