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q45 vogel ,bpp revision kit,in calculation of nedge cash flow why dont we add back depreciation ??
Because of note (vi) in the question.
It says that the depreciation is the same as the amount of investment needed to maintain operations.
So although depreciation itself is not a cash flow, the investment of the same amount is a cash outflow.This is something that the current examiner does a lot of times 🙂
ohh i had doubt whether this was bec of that investment outflow.thanks for confirming it. 🙂
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