Question: Why does finance add back depreciation and amortization in its measure of economic retums? Depreciation is highiy uncertain and should not be counted. Depreciation lsn
Why does finance add back depreciation and amortization in its measure of economic
retums?
Depreciation is highiy uncertain and should not be counted.
Depreciation lsnt a cash expense.
Comparies often overspend for assets, leading deprediation to be too high.
Depreciation appears on the balance sheet, not the income statement.
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