In some contexts (the analysis of financial leases, for example) depreciation tax shields are treated as safe, nominal cash flows and are discounted at an aftertax borrowing or lending rate.
If you account for depreciation, public investment in western infrastructure is negative, notes Klaus-Heiner R? hl of the Cologne Institute for Economic Research.
In the first half of 2014—the only recent period for which results are available—it lost 50m before interest, tax, depreciation and amortisation, on revenues of 60m.
When, say, a company builds a factory, financial rules require it to spread the cost over many years based on depreciation, letting investors know the value of its assets.
Thanks so much for that good deal. (Ethan laughs) So the drivers have to be compensated for the depreciation on their vehicles and the risk of an accident.