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Write a consistent before-tax bridge
The deltas compare proposal and baseline over the same period; R is receipts and C_cash is operating cash cost.
| Item | Change |
|---|---|
| Additional receipts | +200 |
| Additional operating cash costs | +80 |
| Lost contribution elsewhere | −40 |
| Net pretax operating effect | +80 |
Keep nonoperating movements separate
Equipment purchases, working-capital investment and terminal releases are separate dated flows under this example’s boundary. A bridge for operating receipts and costs is not automatically the entire project cash-flow schedule.
Apply an explicit tax model when required
If the case specifies an immediately realized 25% tax effect on the net operating difference, 80 becomes 60 after tax before other modeled tax adjustments. Depreciation-related effects require their own assumptions rather than being hidden in the receipts line.
Avoid gross-versus-net duplication
If a lost-contribution figure already deducts avoided variable costs, do not deduct those same costs again. Identify the definition of every imported amount before adding it to the bridge.