[sahil2024]

Thank you for the clarification!

[sahil2024]

Do we add sales proceeds amt with the depreciation amt before deducting for balancing allowance or charge?

[sahil2024]

–

[sahil2024]

I finally get it! For the 1st one, depreciation was never deducted, so we don’t need to add it back and the 2nd one, I just needed to pay more attention. Thank you so much for the help!

[sahil2024]

–

[sahil2024]

I understand that, as per FCFF we are supposed to add depreciation. Adding depreciation and subtracting it (for the stated purpose) would cancel off each other but in the case of this question we are only subtracting. Why? and why aren’t we including depreciation on the new investment?

[sahil2024]

–

[sahil2024]

Submitted the same question twice. My apologies!

[Author]

Posts