00:02
For this question, we are being told that we work for a company called alpha incorporated.
00:08
You must estimate the year one operating net cash flow for a proposed project with the following data.
00:16
What is the year one operating cash flow? we given sales is 11 ,000, depreciation as 4 ,000 operating costs is 6 ,000.
00:26
The tax rate is 35%.
00:29
So let us start populating a lot.
00:32
Table we have sales these sales amount for $11 ,000 next we have costs amounting for $6 ,000 then we have depreciation which accounts for $4 ,000 which accounts for $4 ,000 and a tax rate of 35%.
01:20
Okay, so the first thing we have to do is find our ebit, which is our earnings before taxes and interest.
01:28
So our ebit for this would be our $11 ,000 minus $6 ,000 minus $4 ,000.
01:40
That leaves us with $1 ,000...