Why Is Depreciation and Amortization Added Back When Calculating Free

question 31

Essay

Why is depreciation and amortization added back when calculating free cash flows generated by a project?

---

Definitions:

Halfway House

A transitional living facility for individuals recovering from addiction or transitioning from prison back into society.

Underserved Populations

Groups of people who lack adequate access to essential services such as healthcare, education, and housing.

Dysfunctional Group Processes

Behaviors and dynamics within a team or group that hinder its effectiveness, including poor communication, lack of collaboration, and conflict.

Policy Advocates

Individuals or organizations that actively promote, defend, or seek to influence public policy and decision-making in favor of specific causes or issues.