When Calculating Operating Cash Flow for a Project,why Would One

question 107

Essay

When calculating operating cash flow for a project,why would one treat EBIT as a negative for tax purposes when there is an operating loss?

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Definitions:

Effective Yield

The total yield of a bond once all charges are factored in, expressed as an annual percentage.

Present Value Factors

Numeric factors used to calculate the present value of a future amount, taking into account a specific interest rate and time period.

Bond Discount

The variance between the face value of a bond and the price at which it's sold, occurring when the bond sells below its face value.

Carrying Value

The amount an asset is valued at in a company's books after accounting for depreciation and amortization.