Question

A project's cash flow is equal to the project's operating cash flow: Multiple Choice plus the project's depreciation expense minus both the project's taxes and capital spending. minus both the project's change in net working capital and capital spending. minus the project's change in net working capital plus all of the depreciation expenses. plus the project's depreciation expenses minus the project's taxes. minus the project's taxes.

Answer 1

Answer: minus both the project's change in net working capital and capital spending.

Explanation:

A Project cash flow is part of financial planning for projects and

it involves the understanding of the inflows and outflows of cash which will be created by the project. The project cash flow is also the net cash flow that is associated with the project for that particular year.

A project's cash flow equals the project's operating cash flow minus the capital spending and the project's change in net working capital.