When to Include depreciation???

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    Topic
  • February 25, 2019 at 6:30 pm #2231871
    baylor.bear95
    Participant

    For the NPV, IRR, etc. equations i feel like their is no hard and fast rule about when to include the depreciation amount into my calculations. Sometimes the questions will mention depreciation and then it not require it in the answer, and I’ve usually used the inclusion of the tax rate in the question to know if it is needed. Is that sound logic? also is the distinction between “future cash flows” and “annual cash savings” important for determining the inclusion/exclusion of depreciation?

    AUD - NINJA in Training
    BEC - 96
    FAR - 92
    REG - 89
    2 to go
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