corp finance: if before tax cash flow is negative account, finance, before

meghanjackson

when calculate a NPV for a project, if for certain year, the before tax cash flow is negative(when take into account of depreciation), will tax be zero or not? Thanks.

jacksparrow

if the question mentions the company has other positive value projects, you can calculate the the tax savings this negative value project generates. So taxes are essentially a positive cash flow.