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Why does finance add back depreciation and amortization in its measure of economic returns? Depreciation appears on the balance sheet, not the income statement. Depreciation
Why does finance add back depreciation and amortization in its
measure of economic returns?
Depreciation appears on the balance sheet, not the income statement.
Depreciation isn't a cash expense.
Depreciation is highly uncertain and should not be counted.
Companies often overspend for assets, leading depreciation to be too high.
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