6. Cash flow and depreciation [LO 10.1] When evaluating projects, we are concerned with only the relevant

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6. Cash flow and depreciation [LO 10.1] ‘When evaluating projects, we are concerned with only the relevant incremental after-tax cash flows.

Therefore, because depreciation is a non cash expense, we should ignore its effects when evaluating projects’. Critically evaluate this statement.

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2024 04:03 AM

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6. Cash flow and depreciation [LO 10.1] When evaluating projects, we are concerned with only the relevant

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Fundamentals Of Corporate Finance

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