The incremental cash tax flow for a capital budgeting project is calculated using which of the following formulas? O Annual amortization marginal income tax rate O Annual amortization x (1-marginal income tax rate) O (Operating cash flow + annual amortization) x marginal income tax rate O Operating cash flow x marginal income tax rate

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
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The incremental cash tax flow for a capital budgeting project is calculated using which of the following formulas?
O Annual amortization x marginal income tax rate
Annual amortization x (1-marginal income tax rate)
(Operating cash flow + annual amortization) x marginal income tax rate
O Operating cash flow x marginal income tax rate
Transcribed Image Text:The incremental cash tax flow for a capital budgeting project is calculated using which of the following formulas? O Annual amortization x marginal income tax rate Annual amortization x (1-marginal income tax rate) (Operating cash flow + annual amortization) x marginal income tax rate O Operating cash flow x marginal income tax rate
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