EBIT EBITDA Revenue in corporate finance question for cash flow calculation

CFA Level II
#1

I get so confused by what the number given means and when can i use CF = (S – C – D)(1 – T) + D and when can I use CF=(S-C)(1-T)+DT

for example for question 13 in reading 23, the question gives The project will generate earnings before interest and taxes of €50 each year for two years. The problem gives EBIT not EBITDA. This means the depreciation is deducted right? so when the question gives you “revenue” such as question one in the same reading, the depreciation is not yet deducted and should subtract sales cost to generate EBITDA, is this about right?

ERRRR, why they have to make it so tedious

#2

By the way, (S – C – D)(1 – T) + D and (S-C)(1-T)+DT are mathematically identical so use whichever you like.

I prefer the first one. Given a revenue, you deduct any fixed & variable _ C _osts, deduct D epreciation, calculate net of _ T _axes and then add back the entire _ D _epreciation because it is not a cash flow (we exploited it only to pay less taxes).