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Investment decisions
Financial Management
Sir, in Investment Decisions, we add back depreciation to get CFAT as depreciation is an expense which does not involve cash outflow. But while calculating Net sale proceeds, they're including the Tax shield as a cash inflow eventhough there is no inflow of cash
Answers (3)
CA Suraj Lakhotia Admin
When you sell, you get cash.
Sir I am asking we add depreciation because it is not an actual cash flow. So as tax sheild is also not a cash inflow know then why do we add it ??
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