Why depreciation play in estimating incremental cash flows, Financial Management

What role does depreciation play in estimating incremental cash flows?

Depreciation expense is a tax deductible expense and thus affects cash flow through its effect on taxes.  Depreciation expense that is incremental to a projected project thus affects incremental cash flows. 

 

Posted Date: 6/17/2013 7:17:47 AM | Location : United States







Related Discussions:- Why depreciation play in estimating incremental cash flows, Assignment Help, Ask Question on Why depreciation play in estimating incremental cash flows, Get Answer, Expert's Help, Why depreciation play in estimating incremental cash flows Discussions

Write discussion on Why depreciation play in estimating incremental cash flows
Your posts are moderated
Related Questions
Additional Paid in Capital - Amounts paid for stock in excess of its PAR VALUE or STATEDVALUE. Furthermore, other amounts paid by stockholders and charged to EQUITY ACCOUNTS other

Which formula would you use to solve for the payment required for a car loan if you know the interest rate, length of the loan, and the borrowed amount?  Explain. To answer for

A portfolio manager would never prefer to make investment decision based on just one set of assumptions. Instead, he would evaluate the outcome of the selected st

Ask I have included a simple capital investment problem which is in Course Documents. We are going to use the same numbers for several classes and look at some of the ways that cap

Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that

Fraud and Society and Analytical Techniques: Fraud and Society - The effects and financial consequences of fraud in society including the individual, older people, financial


ACT presently is all-equity financed. This reflects the stance of the former CEO, a dominant personality who stated repeatedly: "I don't want us to be in thrall to the demands of t

Explain the significance of the term additional funds needed. While the pro forma balance sheet is completed, total assets and total liabilities and equity will hardly match.

Purpose of Issue CDs benefit both issuers and investors. From the issuers (banks) point of view, CDs are issued foreseeing the advantages over conventional deposits. The motives