The operating cash flow for a project should exclude which one of the following?
A)taxes
B)variable costs
C)fixed costs
D)interest expense
E)depreciation tax shield

Question

Quizplus · Accepted Answer

Operating cash flow is calculated as revenues minus all operating expenses, including variable and fixed costs. However, interest expense is not an operating expense, as it is a financing cost, and therefore should be excluded from the operating cash flow calculation.

The Operating Cash Flow for a Project Should Exclude Which