why is the depreciation added back at the full amount. I thought that the depreciation tax shield is the depreciation expense multiplied by the tax rate?
Hi! The excel template is linked to the simulation within the Universal CPA platform. The simulation can be found in BEC Chapter 1 Module 5. You can signup for a free trial using this link: app.universalcpareview.com/account/signup/?next=
why is the depreciation added back at the full amount. I thought that the depreciation tax shield is the depreciation expense multiplied by the tax rate?
Yea he needed to multiply the depreciation expense by the tax rate ($21,000 * 20%), so the actual NPV is $1,301 instead of $5,501.
Kindly share the excel template.
Hi! The excel template is linked to the simulation within the Universal CPA platform. The simulation can be found in BEC Chapter 1 Module 5. You can signup for a free trial using this link: app.universalcpareview.com/account/signup/?next=