Suppose your firm uses the NPV rule in making investment decisions and your after-tax OCF is  $925000. Assume same full debt funding at 12%, tax rate is 35%, 20 year period, straight-line  depreciation, initial investment of $6000000 and after-tax exit cost of $5000000.

 What will be the before-tax OCF?

Answer rating: 100% (QA)

To find the beforetax Operating Cash Flow OCF we need to start with the aftertax OCF and then adjust ... View the full answer