Depreciation does not generate cash,but it does have a cash benefit if it results in lower taxes.

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Depreciation is a non-cash expense that reduces the value of an asset over time. It does not directly generate cash. However, it does have a cash benefit if it leads to lower taxes. This is because depreciation can be claimed as a tax deduction, reducing the taxable income and thus lowering the amount of tax owed. So even though depreciation itself does not create cash, the tax savings resulting from depreciation can free up cash for other purposes.

Depreciation Does Not Generate Cash,but It Does Have a Cash