3 years ago

All else constant how would an increase in annual depreciation affect a project's operating cash flow?

Business

1 answer:

MatroZZZ [7]3 years ago

6 0

Answer:

The answer is 'will increase the project's operating cash flow.

Explanation:

The project's operating cashflow has a direct or positive relationship with the annual depreciation expenses. This means the increase in annual depreciation will increase the project operating cash flow and likewise a decrease in annual depreciation will decrease the project's operating cash flow.

Depreciation is the result of wear/tear on the machine.

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