Asked by
Magic Coolbus
on Dec 01, 2024
Verified
Changes in depreciation are relevant in cash flow estimation only because of their tax impact.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.
Tax Impact
The effect of taxation on an individual's or company's financial situation, including tax liabilities and planning.
- Acknowledge the significance of factoring in depreciation and tax consequences when estimating cash flow.
Verified Answer
HR
Learning Objectives
- Acknowledge the significance of factoring in depreciation and tax consequences when estimating cash flow.