depreciation policy

[dimpy.handa]

examine the effects of depreciation policy on the cash flows of a firm. how does depreciation affect the cash flows of a proposal?

 

[Paramjeet_1988]

Depreciation acts as a tax shield it reduces the amount that has to be allocated to the tax purpose. Depreciation that can be either linear or written down is continuously subtracted from the given amount.

It affects the proposal of the firm since it is counted as an outflow of the firm so it has to be deducted in the cash flow. If depreciation is not subtracted then tax amount will be high and the chance of accepting the proposal increases while it is not necessary so since machines are depreciating.

 

[vardhanvishnug]

depreciation is the value thats lost from an asset in the progress of time and there are many methods to calculate this depreciation which takes many elements into consideration so finally the lost value of the asset is outflow

 

[rosemarry2]

examine the effects of depreciation policy on the cash flows of a firm. how does depreciation affect the cash flows of a proposal?

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