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Dear tutor,
This question is silent as to whether the accounting depreciation charged in the income statement is equal to the economic depreciation, although the solution suggests that it is, hence why no adjustments were made in respect of this when calculating the NOPAT
If a question is silent on this, do we assume that this is always the case ? (i.e. accounting depreciation in the income statement is equal to economic depreciation) when calculating the NOPAT figure?
Thank you.
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