Management Advisory Services (MAS) · Lesson 12 of 12

Capital Budgeting in Depth: Project Cash Flows, Taxes, and the Depreciation Tax Shield

Build the three stages of a project's cash flows, convert accounting income into after-tax operating cash flow two equivalent ways, compute the depreciation tax shield, handle the after-tax proceeds of an asset disposal and the recovery of working capital, and rank projects under capital rationing with the profitability index.

17 min read · Super Ea