Depreciation tax shields


Question:

Depreciation provides a sort of shield against taxes. If there were no taxes, there would be no depreciation tax shields. Does this mean that a project's NPV would be less if there were no taxes? Explain.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Depreciation tax shields
Reference No:- TGS02048841

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)