Depreciation itself is not a cash outflow, though it reduces the amount of income taxes that a company must pay.

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Depreciation is a non-cash expense that represents the decrease in value of an asset over time. It is not a cash outflow because no money actually leaves the company. However, since depreciation reduces a company's taxable income, it can indirectly reduce the amount of income taxes that the company must pay.

Depreciation Itself Is Not a Cash Outflow, Though It Reduces