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Q: Should depreciation and taxes be used when calculating an irr?
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Do you include Deferred income taxes current for calculating current assets in working capital calculation?

No you dont. Think about it, part of the equation for free cash flow is defined as subtracting out changes in working capital, capex, and changes in deferred taxes. changes in deferred taxes should be used in calculating cash taxes, not changes in working capital


What does Ebitda stand for in taxes?

The acronym "EBITDA" stands for "earnings before interest, taxes, depreciation and amortization". It is an equation used by large companies to predict and measure financial results.


Why is depreciation necessary?

Depreciation is an incentive for investment in equipment. It encourages businesses to buy equipment that will be used to provide employment.Depreciation is effectively a tax credit. It reduces the profits and therefore the taxes due.Depreciation cost is a term used to account for the loss of value in an item over time. There are four methods of depreciation that are approved for use under the generally accepted accounting principles or GAAP. The most commonly used methods are straight-line depreciation, declining balance and percentage of use.


Do you have to pay capital gains taxes on an inherited property that was sold and inheritance taxes were already paid on the estate?

On the amount the property went up in value from the value used in calculating the estate tax


Accelerated depreciation method?

Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.

Related questions

What is the expansion of PBDIT?

PBDIT stands for "Profit Before Depreciation Interest and Taxes" How to abbreviate "Profit Before Depreciation Interest and Taxes"? "Profit Before Depreciation Interest and Taxes" can be abbreviated as PBDIT.


How is math used in a salon?

* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts* Payroll* Calculating percentage on sales * taxes * Interests * Billing purposes * Calculating financial capital * Calculating floating accounts


Do you include Deferred income taxes current for calculating current assets in working capital calculation?

No you dont. Think about it, part of the equation for free cash flow is defined as subtracting out changes in working capital, capex, and changes in deferred taxes. changes in deferred taxes should be used in calculating cash taxes, not changes in working capital


What does Ebitda stand for in taxes?

The acronym "EBITDA" stands for "earnings before interest, taxes, depreciation and amortization". It is an equation used by large companies to predict and measure financial results.


Why is depreciation necessary?

Depreciation is an incentive for investment in equipment. It encourages businesses to buy equipment that will be used to provide employment.Depreciation is effectively a tax credit. It reduces the profits and therefore the taxes due.Depreciation cost is a term used to account for the loss of value in an item over time. There are four methods of depreciation that are approved for use under the generally accepted accounting principles or GAAP. The most commonly used methods are straight-line depreciation, declining balance and percentage of use.


What is one tenth of one cent?

That is called a "mill". It is used, among other things, for calculating property taxes and the like.


Do you have to pay capital gains taxes on an inherited property that was sold and inheritance taxes were already paid on the estate?

On the amount the property went up in value from the value used in calculating the estate tax


What are the effect of depreciation on profit and loss and balance sheet?

Depreciation is an expense. It should be charged under expense of a P&L Statement. Provision for Depreciation is the total depreciation of a particular fixed asset accumulated over the years. It should be deducted from the figure of the Fixed asset.


What is MODIFIED straight line method for calculating depreciation?

The modified straight-line method for calculating depreciation is a variation of the straight-line method where the depreciation expense is accelerated in the early years and then slows down in the later years. This method takes into account the salvage value of the asset and spreads the depreciation expense more evenly over the useful life of the asset. It is often used when the asset's cost declines more rapidly in the early years of its useful life.


Accelerated depreciation method?

Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.


What is the depreciation on a used Mitsubishi car?

The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.


What is the term used to describe the decreasing value or wearing out of a good?

depreciation