The tax shield approach to computing the operating cash flow, given a tax-paying firm: separates cash inflows from cash outflows. is based on the fact that depreciation does not affect the operating...



The tax shield approach to computing the operating cash flow, given a tax-paying firm:



























separates cash inflows from cash outflows.


is based on the fact that depreciation does not affect the operating cash flows.


considers the changes in net working capital resulting from a new project.


recognizes that depreciation creates a cash inflow.


ignores both interest expense and taxes.
Nov 11, 2021
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