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Fm (ipcc may 2015)

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(Querist)
27 November 2014 In capital budgeting why is depreciation added back in the statement to find out the CFAT?
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
27 November 2014 firstly its non cash exp and in capital bug all cal are exclusively based on cash inflow and outflow and secondly depreciation is also an estimated amount of loss in value of asset which cannot be estimated accuratly.
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