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Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.

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Answer preview to Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.

Cash flow is not immediately impacted by depreciation asit modifies the firm's tax obligations, which consequently reduces outgoing cash from income taxes, henceit indirectly impacting the flow of cash in the business cash flows. According toOhm(2019), depreciation becomes listed as an expense or cost to an enterprise's taxretum

Last Updatd: 10 Aug,2023