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







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