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  1. business
  2. accounting
  3. depreciation expenses should be added back to afte

Depreciation expenses should be added back to after tax EBIT to get operating cash flows...

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Accounting

Depreciation expenses should be added back to after tax EBIT to get operating cash flows because

  1. depreciation is not important.
  2. depreciation is a noncash expense and cash flow on capital expenditures have already been counted in the beginning
  3. most businesses don't have depreciation
  4. depreciation is not considered by IRS.

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