Which of the Following Are Correct Methods for Computing the Operating

question 22

Multiple Choice

Which of the following are correct methods for 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) x (Taxes + Depreciation) x (1 - Taxes)

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

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Definitions:

Loaves

Typically refers to units of bread shaped and baked in specific sizes and forms but does not directly correlate to a distinct economic term.

Pounds

A unit of weight in the imperial system, equal to 16 ounces or approximately 0.453592 kilograms.

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their total utility, given the prices of goods and services.

Total Utility

The total satisfaction received from consuming a particular quantity of goods and services.