Which of the Following Are Correct Methods for Computing the Operating

question 75

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) * (Taxes + Depreciation) * (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:

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