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?

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Definitions:

Cross Ownership

The ownership of multiple types of media outlets, such as TV and radio stations, newspapers, and magazines, by a single person or corporation.

Concentration

The process by which the number of companies producing and distributing a particular commodity decreases, often through mergers and conglomeration.

Media Power

The influence that media has on public opinion and the shaping of culture, politics, and society.

Monopoly

A market structure where a single entity exclusively controls a particular industry or service, limiting competition.