Response to the following problem:
Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.6 million, operating costs of $3.6 million, and a depreciation expense of $0.6 million. Assume the tax rate is 30%.
a. Calculate cash flow for the year by using all three methods:
(a) adjusted accounting profits;
(b) cash inflow/cash outflow analysis; and
(c) the depreciation tax shield approach.
(Enter your answers in millions rounded to 2 decimal places.)
b. Are the above answers equal? Yes or no