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12. Deducting depreciation from operating cash flows would result in counting the initial investment twice, in the discounted
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Answer #1

(A) True

.

Explanation:

Investment value is considered as a Cash Outflow in the initial period. Now, deducting the Depreciation of investment value will lead to a double deduction.

  • Firstly, the investment value,
  • Secondly, the investment value over the years termed as Depreciation.
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