Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
10th Edition
ISBN: 9780135639344
Author: Arthur J. Keown, John D Martin, J. William Petty
Publisher: PEARSON
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Chapter 11, Problem 2RQ
Summary Introduction

To discuss: Whether depreciation affects the level of cash flows from a project in any way if it is not a cash flow expenses.

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Depreciation is a noncash expense: why is it considered when estimating a project net cash flows?
how can depreciation be a cash flow?
(b) Although depreciation is not a cash flow item, it plays an important role in thecalculation of cash flow. Describe the impact of depreciation on a project’s cash flow.
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