Can you please explain WHY the following statement is TRUE or FALSE
The specific impact of changes in depreciation expenses on FCF can be discerned by multiplying the incremental depreciation expense by the tax rate.
The given statement is TRUE because when there would be depreciation impact on free cash flow, it will be generally increasing the free cash flows because depreciation is always added to the operating income and it will be helping in increasing the free cash flows by multiplying the amount of depreciation with the corporate tax rate as depreciation is also not taxable so it will be helping in order to identify the impact of change in depreciation expenses on free cash flows
The given statement is TRUE.
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