322.3
Your corporate tax rate is 33%. You are considering a project that will produce operating cash flows of $10,000 and a depreciation expense of $2000 in the first year. How much will your taxes be and how much will your after tax cash flow be in the first year.
Your taxes will be figured based on your operating cash flow minus depreciation: $10000 - $2000=$8000. So your taxes will be $8000(.33)=$2640. Since your depreciation is not really a cash flow, you will have $10,000 - $2640 = $7360 left over as your after-tax cash flow.