Chapter 10 formulas Flashcards
1
Q
Project cash flow =
A
Project cash flow =
project operating cash flow - project change in net working capital - project capital spending
2
Q
Operating cash flow =
A
Operating cash flow =
earnings before interest and taxes (EBIT) + depreciation - taxes
3
Q
Depreciation =
A
Depreciation =
initial cost / number of years in life
4
Q
Initial cash flow =
A
initial cash flow =
current value - unused - opp cost - cost
5
Q
Operating cash flow =
A
Operating cash flow =
(Rate - Cost) (1 - Tax Rate) + SL Dep (Tax Rate)
6
Q
After tax salvage value =
A
After tax salvage value =
Salvage value - [(BV - SV) (tax rate)]
7
Q
straight line depreciation (dep/yr) =
A
straight line depreciation (dep/yr) =
asset value / value life
8
Q
EBIT =
A
EBIT =
operating cost - (asset value / asset life)
thats with no depreciation tho
9
Q
A
