In calculation of return phase why we didn't take depreciation allowance benefit to arrive cash flows .We usually add them up (tax allowance on dep) in cash flows .
Here allowance is taken in Investment phase ?
Are both approach right? Can I go with taking tax allowance benefit in return phase?
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75 blipton
9y ago#1Strictly the benefits of the depreciation allowance are part of the investment phase, because they occur because of the investment.
However, if you took them in the return phase then you would probably still get the marks.
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