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Depreciation is an accounting concept that does not relate directly to current cash flows. How does...

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Finance

Depreciation is an accounting concept that does not relatedirectly to current cash flows. How does it impact on a capitalbudgeting decision?

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Depreciation is reduction of book value on an annual basis But there is no actual cash outflow It is a non cash expense Therefore it must be added back to EBIT for calculating    See Answer
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Depreciation is an accounting concept that does not relatedirectly to current cash flows. How does it impact on a capitalbudgeting decision?

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