Hi
1.I am working on a NPV case study. My first year I have a negative sales less Op. costs. Can I then still use the following :
Sales
less costs
less depreciation
(-EBIT)
calculate tax on (-EBIT)
less tax
add depreciation
to work out cash flow

2. If I have a small positive sales less Op. Costs and then when subtract depreciation it is negative. Work out tax on that and then add depreciation back to get my cash flow figure?

Are these correct assumptions?

thanks, mitch