Asked by Andro Meikhaeil on Jul 20, 2024
Verified
Explain the effects that depreciation has on both the net income and the operating cash flows of a project.
Depreciation
A technique for distributing the expense of a physical asset throughout its period of usability.
Net Income
Net income is the total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.
Operating Cash Flows
Cash generated from a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.
- Acquire knowledge on the concept of operating cash flow and the methodology for its computation.
- Master and employ a variety of approaches for estimating the operating cash flow (OCF) in projects.
Verified Answer
Learning Objectives
- Acquire knowledge on the concept of operating cash flow and the methodology for its computation.
- Master and employ a variety of approaches for estimating the operating cash flow (OCF) in projects.
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