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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Related Book For
Cost Accounting Foundations And Evolutions
ISBN: 9780324235012
6th Edition
Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn
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