Question: Question 1 Why does finance add back depreciation and amortization in its measure of economic returns?Depreciation isn't a cash expense.Companies often overspend for assets, leading
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Why does finance add back depreciation and amortization in its measure of economic returns?Depreciation isn't a cash expense.Companies often overspend for assets, leading depreciation to be too high.Depreciation appears on the balance sheet, not the income statement.Depreciation is highly uncertain and should not be counted.
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