Which of the Following Are Correct Methods for Computing the Operating

question 50

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) × (1 - Tax rate) ] + [Depreciation × Tax rate]

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

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