The tax-shield approach for calculating project operating cash flow does not require you to add back noncash deductions such as depreciation.

Question

Quizplus · Accepted Answer

The tax-shield approach to calculating project operating cash flow involves adding back noncash deductions such as depreciation because these deductions reduce taxable income, thereby affecting the project's net cash flow through tax savings.

The Tax-Shield Approach for Calculating Project Operating Cash Flow Does