If You Add Depreciation and Amortization to Incremental Net Operating

question 23

True/False

If you add depreciation and amortization to incremental net operating profits after tax (NOPAT), then you will obtain incremental cash flow from operations.

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Definitions:

EAC

Stands for "Estimate at Completion," a project management term that forecasts the total cost of a project at its completion.

Mutually Exclusive

Situations or events that cannot occur at the same time or cannot be true simultaneously; choosing one option precludes the choice of the other.

Buildings

Structures, typically permanent and of substantial size, constructed or adapted for various uses, including residential, commercial, or industrial purposes.

Depreciated

Depreciation refers to the accounting practice of spreading out the expense of a physical asset over the duration of its expected lifespan.