Cash Flows. Weve emphasized that the firm should pay attention only to cash flows when assessing the

Question:

Cash Flows. We’ve emphasized that the firm should pay attention only to cash flows when assessing the net present value of proposed projects. Depreciation is a noncash expense.

Why then does it matter whether we assume straight-line or MACRS depreciation when we assess project NPV?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

Question Posted: