Please use the three methods given to calculate the operating cash flow using information given.

- Exercise 1 - A new project will generate sales of $74 million, costs of $42 million, and depreciation expense of $10 million in the coming year. - The firm's tax rate is 35%. - Calculate operating cash flow for the year by using all three methods discussed in the chapter, and confirm that they are equal. - Methods of Handling Depreciation - Method I: Dollars in minus dollars out: Take only the items from the income statement that represent actual cash flows. You do not subtract a charge for depreciation Operating cash flow = revenues - cash expenses taxes - Method 2: Adjusted accounting profits. You can start with after-tax accounting profits and add back any depreciation deduction. Methods of Handling Depreciation - Method 3: Add back depreciation tax shield - Each additional dollar of depreciation reduces taxable income by $1. So, if the firm's tax bracket is 35%, tax payments fall by $0.35. Depreciation tax shield = tax rate depreciation - Operating cash flow = (revenues cash expenses) (1 tax rate )+ Depreciation tax shield