Calculating After-Tax Operating Cash Flow

[lawschoolCFA]

Question 31, Mock Exam, Morning Session asks us to calculate the after-tax operating cash flow. The answer states to multiply Operating Income by (1-tax rate) plus depreciation. However, the answer does not mention any the interest expense deduction. Why does the after-tax operating cash flow not take into account the tax shield for interest? In other words, why does the do we tax the entirety of operating income?

 

[Yayyywork]

That is a corporate finance question, in corporate finance you ignore interest as it is accounted for in the discount rate