How Does Depreciation Affect the Calculation of a Project's Payback

question 40

Multiple Choice

How does depreciation affect the calculation of a project's payback period?

• A)Depreciation is deducted from the annual cash inflows.
• B)Depreciation is added to the annual cash inflows.
• C)Depreciation is only deducted if the payback period exceeds five years.
• D)Depreciation does not affect the payback calculation.