Taxation and depreciation impact a projects cash flows because operating income is subject to income tax,

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Taxation and depreciation impact a project’s cash flows because

• operating income is subject to income tax, which reduces the cash inflows from the capital project.

• depreciation reduces the amount of taxes paid since depreciation is deducted in determining the taxable income from a project. LO.1 

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Cost Accounting Foundations And Evolutions

ISBN: 9780324235012

6th Edition

Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn

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