When computing cash flows for a company with operating leases,an analyst should add back the lease depreciation to NOPLAT.

Name: When computing cash flows for a company with operating leases,an analyst should add back the lease depreciation to NOPLAT.
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Quizplus · Accepted Answer

To build adjusted free cash flow, do not add lease depreciation back to NOPLAT to compute gross cash flow. Although depreciation is a noncash charge for the lessor, it is a cash charge for the lessee.

When Computing Cash Flows for a Company with Operating Leases,an