Question

A project's operating cash flow will increase when the: Group of answer choices depreciation expense increases. interest expense is lowered. net working capital requirement increases. sales projections are lowered. earnings before interest and taxes decreases.

Answer 1

The correct option is (a) depreciation expense increases.

A measure of the amount of money made by a company's regular business operations is called operating cash flow (OCF). Operating cash flow shows if a business can produce enough positive cash flow to support and expand its operations; if not, it may need outside finance for capital growth.

While cumulative depreciation is the overall amount of wear and tear to date, depreciation expense is the amount that a company's assets are depreciated for a specific period (such as a quarter or the year). Accumulated depreciation is neither an expense, nor is it a depreciation expense.

Learn more about operating cash flow (OCF) here

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