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Depreciation is a tough concept since there may be so many factors associated with it. The...

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Economics

Depreciation is a tough concept since there may be so manyfactors associated with it. The IRS changes the tax deductionsgiven for depreciation on a regular basis. On a larger purchase thetax deduction may be significant. How much of a factor do you thinkdepreciation should be on the decision to move forward with aproject? For example, if the tax benefit is greater in thefollowing year, should management hold off on the purchase? Do youfeel that managers understand this concept well enough to includeit in their decision making process?

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Depreciation is the deduction you get in the current year even though you have not spent money to buy in that particular year only Depreciation expenses should be taken at the end of the year to get included in    See Answer
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