The top-down approach for calculating project operating cash flow does not require you to add back noncash deductions such as depreciation.

Top-Down Approach

An investment strategy that starts with global economics before identifying specific sectors and companies for investment.

Operating Cash Flow

An indicator of the money produced through the regular business activities of a company.

Noncash Deductions

Expenses that reduce taxable income but do not involve an actual cash outlay, such as depreciation.