Question

this year a certain investment project generated revenue of $200,000. other expenses (excluding depreciation and interest expense) totaled $100,000. depreciation expense was $50,000 and interest expense were $10,000. the firm faces a tax rate of 21. what is the project's after-tax operating cash flow this year?

Answer 1

The after tax operating cash is $895000

The Before-Tax Cash Flow is calculated by deducting Operating and Capital Costs from Revenue. Additionally, Before-Tax Cash Flow is equal to Cash Flow after Tax less Income Tax.

A measure of financial performance known as cash flow after taxes (CFAT) reveals a company's capacity to produce cash flow from its operations. It is determined by adding non-cash expenses like impairment, depreciation, restructuring costs, and amortization back to net income.

after-tax operating cash flow =

(revenues-other exp-depr ex)* (1-tax rate) + depr exp

=(200000-100000-50000)*(1-0.21)+50000

=895000

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