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

question 87

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 does not affect the payback calculation.
• D) Depreciation is only deducted if the payback period exceeds five years.

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