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is it possible to get negative cash flow before Tax and how can i deduct tax if it is negative ,
they give me information if the question for example the first year
Q – 7500
revenue – 300
cost – 90
fixed cost 000#/per year 3000
is that mean the fixed cost is 3000 000 ? if that the case there will be negative cash flow ?No this is unlikely but if you did have a case of a negative operating cash flow resulting in a tax saving, this is effectively a cash inflow for the project. This means that instead of paying tax, the company benefits from a reduction in its overall tax liability due to the negative cash flow.
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