In multinational capital budgeting, depreciation is treated as a cash outflow.

Name: In multinational capital budgeting, depreciation is treated as a cash outflow.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

Depreciation is not a cash outflow. It is a non-cash expense that reduces taxable income, but it does not involve any actual cash payments. Instead, the company subtracts the accumulated depreciation from the cost of the asset to arrive at the book value or net book value.

In Multinational Capital Budgeting, Depreciation Is Treated as a Cash